Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

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

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

Thanks a ton Vikas for such a detailed explanation.

On Wed, May 30, 2012 at 6:00 PM, Vikas Mayur <vi...@gmail.com> wrote:

> I only presented a possible way to execute your scenario in OFBiz, there
> may be some better/alternate solution though. As I said before you will
> need an Item adjustment for sales tax to be able to generate a sales tax
> line item on Invoice. From there you would be able to post accounting
> transaction to the gl account related to sales tax. I believe you only need
> to figure out how to create the item adjustment (OrderAdjustment record)
> for sales tax.
>
> Regards
> Vikas
>
> On May 30, 2012, at 5:14 PM, Nandani Aggarwal wrote:
>
> > But with reference to my second post in this thread , my problem was to
> see
> > tax transaction (along with other transactions) in an invoice provided
> that
> > sales tax (VAT or CST etc) is already included in product price.
> >
> >
> > Regards
> > Nandani
> >
> > On Wed, May 30, 2012 at 4:45 PM, Vikas Mayur <vi...@gmail.com>
> wrote:
> >
> >> No, it won't because sales tax is not charged on the order.
> >>
> >> Regards
> >> Vikas
> >>
> >> On May 30, 2012, at 4:11 PM, Nandani Aggarwal wrote:
> >>
> >>> Vikas,
> >>>
> >>> Thank a lot ,What ever you explained is absolutely correct but by doing
> >>> taxable = 'N' and taxPromotions to 'N' are you able to see tax
> >> transaction
> >>> in your invoice  which shows the amount paid to tax authority.?
> >>>
> >>> Regards
> >>> Nandani
> >>>
> >>> On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <vi...@gmail.com>
> >> wrote:
> >>>
> >>>> Nandani,
> >>>>
> >>>> I have never tested this use case before and was curious to know how
> >> this
> >>>> works so I did few test by placing a sales order for product WG-1111
> and
> >>>> DemoCustomer (note: the shipping address of this demo customer is Utah
> >> and
> >>>> OFBiz demo data have a tax authority setup for this state. I only did
> >> one
> >>>> change in the TaxAuthorityRateProduct entity by setting the attribute
> >>>> taxPromotions to 'N') from demo data once by setting the taxable flag
> on
> >>>> this product to 'Y' (although keeping it null is same) and once by
> >> setting
> >>>> the flag to 'N' . When taxable flag is 'N' the item was exempted from
> >> sales
> >>>> tax and when it is 'Y' or Null the sales tax for item is aded to the
> >> cart
> >>>> or order grand total.
> >>>>
> >>>> You may need to check your tax authority setup i.e. whether you have
> >>>> allowed tax on shipping and/or promotion. I doubt tax amount you are
> >> seeing
> >>>> in the grand total is either calculated on shipping and/or promotion.
> >>>>
> >>>> Below is code snip from the service calcTax in TaxAuthorityServices
> >> Class
> >>>> and conditional check on taxable flag determines whether the item
> >> should be
> >>>> tax exempted or not.
> >>>>
> >>>>              if (product != null && (product.get("taxable") == null ||
> >>>> (product.get("taxable") != null &&
> >>>> product.getBoolean("taxable").booleanValue()))) {
> >>>>                  taxable = taxable.add(itemAmount);
> >>>>              }
> >>>>
> >>>> HTH
> >>>>
> >>>> Regards
> >>>> Vikas
> >>>>
> >>>> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
> >>>>
> >>>>> Thank a lot for help and such a nice and simple explanation of
> answers.
> >>>>>
> >>>>> I tried your solutions with taxable field value as "Y"and "N"
> both.But
> >> in
> >>>>> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
> >>>> value
> >>>>> and (cart.getGrandTotal()) adds this tax in price(already including
> tax
> >>>>> value).
> >>>>>
> >>>>> I changed (cart.getGrandTotal()) so that it doesn't include tax but
> >>>> during
> >>>>> order creation it adds tax amount to total amount.It adds Order
> >>>>> adjustments (like discounts or tax).So should i change there as well
> or
> >>>>> there is another simple solution to it.
> >>>>>
> >>>>>
> >>>>> - Regards
> >>>>> Nandani
> >>>>>
> >>>>> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com>
> >>>> wrote:
> >>>>>
> >>>>>> Inline
> >>>>>>
> >>>>>> Regards
> >>>>>> Vikas
> >>>>>>
> >>>>>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
> >>>>>>
> >>>>>>> Thanks a lot for reply.
> >>>>>>>
> >>>>>>> I am facing some problem in maintaining sales tax transactions.In
> my
> >>>>>> case ,
> >>>>>>> on my ecommerce site i am displaying products including tax,
> >>>>>>> Problem :
> >>>>>>> 1. I am displaying product with price including tax.So when order
> is
> >>>>>> placed
> >>>>>>> and invoice is created then tax transactions display tax amount on
> >>>> price(
> >>>>>>> already including tax).
> >>>>>>> For example : Product "A" is displayed at price Rs100 (Price :90 +
> >> tax
> >>>> :
> >>>>>>> 10).
> >>>>>>> But on invoice transactions are :
> >>>>>>> Sales Transactions - Rs100
> >>>>>>> Tax Transactions - RS 10
> >>>>>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should
> be
> >> Rs
> >>>>>>> 100/-
> >>>>>>> I want grand total should be sum of product's  subtotal.
> >>>>>>
> >>>>>> Check the 'taxable' field on Product entity, I think setting it to
> 'N'
> >>>> on
> >>>>>> individual products should exempt the product from further sales
> tax.
> >>>>>>
> >>>>>>>
> >>>>>>> 2. If i want to Apply discount on price excluding tax and then
> >> display
> >>>>>>> final amount (Price - discount) + tax.
> >>>>>>> But in ofbiz i am unable to display such price and grandtotal.
> >>>>>>>
> >>>>>>> Any idea ,  how above problems can be handled.?
> >>>>>>
> >>>>>> Discount and Tax should be created as Order Adjustments to display
> the
> >>>>>> prices in the manner you mentioned.
> >>>>>>
> >>>>>> I haven't done any testing but I think there may be solution OOTB
> with
> >>>>>> some minor modifications where required.
> >>>>>>
> >>>>>> Lets take your example for instance. Product 'A' displayed price is
> >> Rs.
> >>>>>> 100 (Actual product price is 90 & tax is 10). Lets say you want to
> >> give
> >>>> Rs.
> >>>>>> 20 discount on the product price which means that your order total
> >> will
> >>>> be
> >>>>>> Rs. 80 with product price after discount as Rs. 70 (since discount
> is
> >>>>>> applied after excluding tax from product price) & a total sales tax
> of
> >>>> Rs.
> >>>>>> 10.
> >>>>>>
> >>>>>> Instead of Rs. 20 discount, you may give a discount including the
> >> sales
> >>>>>> tax on the price displayed to customer.
> >>>>>>
> >>>>>> Final Product Price = Price Displayed - (Discount + Tax) = 100 -
> (20 +
> >>>> 10)
> >>>>>> = 70
> >>>>>>
> >>>>>> You may then apply the tax on the product price (note you don't need
> >> to
> >>>>>> set the 'taxable' flag I mentioned above) in such a manner that tax
> >>>> amount
> >>>>>> is added back to the order total.
> >>>>>>
> >>>>>> Item Sub Total = Rs. 100
> >>>>>> Discount = Rs. 30
> >>>>>> Sales Tax = Rs. 10
> >>>>>>
> >>>>>> Order Total = Rs. 80
> >>>>>>
> >>>>>> HTH
> >>>>>>
> >>>>>>> I want correct transaction details on my invoice.It should include
> >>>>>> discount
> >>>>>>> , tax and sales information.
> >>>>>>> Tax is added in product price itself.Tax is not included in final
> >> order
> >>>>>>> amount.
> >>>>>>>
> >>>>>>> Thanks
> >>>>>>> Nandani
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vikasmayur@gmail.com
> >
> >>>>>> 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 <
> vikasmayur@gmail.com
> >>>
> >>>>>>>> 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 <vi...@gmail.com>
> >>>>>>>>>>>>
> >>>>>>>>>>>>> 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 <vi...@gmail.com>
> >>>>>>>>>>>>>>
> >>>>>>>>>>>>>>> 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
> >>>>>>>>>>>>>>>
> >>>>>>>>>>>>>>>
> >>>>>>>>>>>>>>>
> >>>>>>>>>>>>>>>
> >>>>>>>>>>>>>
> >>>>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>
> >>>>>>
> >>>>
> >>>>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

I only presented a possible way to execute your scenario in OFBiz, there may be some better/alternate solution though. As I said before you will need an Item adjustment for sales tax to be able to generate a sales tax line item on Invoice. From there you would be able to post accounting transaction to the gl account related to sales tax. I believe you only need to figure out how to create the item adjustment (OrderAdjustment record) for sales tax.

Regards
Vikas

On May 30, 2012, at 5:14 PM, Nandani Aggarwal wrote:

> But with reference to my second post in this thread , my problem was to see
> tax transaction (along with other transactions) in an invoice provided that
> sales tax (VAT or CST etc) is already included in product price.
> 
> 
> Regards
> Nandani
> 
> On Wed, May 30, 2012 at 4:45 PM, Vikas Mayur <vi...@gmail.com> wrote:
> 
>> No, it won't because sales tax is not charged on the order.
>> 
>> Regards
>> Vikas
>> 
>> On May 30, 2012, at 4:11 PM, Nandani Aggarwal wrote:
>> 
>>> Vikas,
>>> 
>>> Thank a lot ,What ever you explained is absolutely correct but by doing
>>> taxable = 'N' and taxPromotions to 'N' are you able to see tax
>> transaction
>>> in your invoice  which shows the amount paid to tax authority.?
>>> 
>>> Regards
>>> Nandani
>>> 
>>> On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <vi...@gmail.com>
>> wrote:
>>> 
>>>> Nandani,
>>>> 
>>>> I have never tested this use case before and was curious to know how
>> this
>>>> works so I did few test by placing a sales order for product WG-1111 and
>>>> DemoCustomer (note: the shipping address of this demo customer is Utah
>> and
>>>> OFBiz demo data have a tax authority setup for this state. I only did
>> one
>>>> change in the TaxAuthorityRateProduct entity by setting the attribute
>>>> taxPromotions to 'N') from demo data once by setting the taxable flag on
>>>> this product to 'Y' (although keeping it null is same) and once by
>> setting
>>>> the flag to 'N' . When taxable flag is 'N' the item was exempted from
>> sales
>>>> tax and when it is 'Y' or Null the sales tax for item is aded to the
>> cart
>>>> or order grand total.
>>>> 
>>>> You may need to check your tax authority setup i.e. whether you have
>>>> allowed tax on shipping and/or promotion. I doubt tax amount you are
>> seeing
>>>> in the grand total is either calculated on shipping and/or promotion.
>>>> 
>>>> Below is code snip from the service calcTax in TaxAuthorityServices
>> Class
>>>> and conditional check on taxable flag determines whether the item
>> should be
>>>> tax exempted or not.
>>>> 
>>>>              if (product != null && (product.get("taxable") == null ||
>>>> (product.get("taxable") != null &&
>>>> product.getBoolean("taxable").booleanValue()))) {
>>>>                  taxable = taxable.add(itemAmount);
>>>>              }
>>>> 
>>>> HTH
>>>> 
>>>> Regards
>>>> Vikas
>>>> 
>>>> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
>>>> 
>>>>> Thank a lot for help and such a nice and simple explanation of answers.
>>>>> 
>>>>> I tried your solutions with taxable field value as "Y"and "N" both.But
>> in
>>>>> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
>>>> value
>>>>> and (cart.getGrandTotal()) adds this tax in price(already including tax
>>>>> value).
>>>>> 
>>>>> I changed (cart.getGrandTotal()) so that it doesn't include tax but
>>>> during
>>>>> order creation it adds tax amount to total amount.It adds Order
>>>>> adjustments (like discounts or tax).So should i change there as well or
>>>>> there is another simple solution to it.
>>>>> 
>>>>> 
>>>>> - Regards
>>>>> Nandani
>>>>> 
>>>>> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com>
>>>> wrote:
>>>>> 
>>>>>> Inline
>>>>>> 
>>>>>> Regards
>>>>>> Vikas
>>>>>> 
>>>>>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
>>>>>> 
>>>>>>> Thanks a lot for reply.
>>>>>>> 
>>>>>>> I am facing some problem in maintaining sales tax transactions.In my
>>>>>> case ,
>>>>>>> on my ecommerce site i am displaying products including tax,
>>>>>>> Problem :
>>>>>>> 1. I am displaying product with price including tax.So when order is
>>>>>> placed
>>>>>>> and invoice is created then tax transactions display tax amount on
>>>> price(
>>>>>>> already including tax).
>>>>>>> For example : Product "A" is displayed at price Rs100 (Price :90 +
>> tax
>>>> :
>>>>>>> 10).
>>>>>>> But on invoice transactions are :
>>>>>>> Sales Transactions - Rs100
>>>>>>> Tax Transactions - RS 10
>>>>>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be
>> Rs
>>>>>>> 100/-
>>>>>>> I want grand total should be sum of product's  subtotal.
>>>>>> 
>>>>>> Check the 'taxable' field on Product entity, I think setting it to 'N'
>>>> on
>>>>>> individual products should exempt the product from further sales tax.
>>>>>> 
>>>>>>> 
>>>>>>> 2. If i want to Apply discount on price excluding tax and then
>> display
>>>>>>> final amount (Price - discount) + tax.
>>>>>>> But in ofbiz i am unable to display such price and grandtotal.
>>>>>>> 
>>>>>>> Any idea ,  how above problems can be handled.?
>>>>>> 
>>>>>> Discount and Tax should be created as Order Adjustments to display the
>>>>>> prices in the manner you mentioned.
>>>>>> 
>>>>>> I haven't done any testing but I think there may be solution OOTB with
>>>>>> some minor modifications where required.
>>>>>> 
>>>>>> Lets take your example for instance. Product 'A' displayed price is
>> Rs.
>>>>>> 100 (Actual product price is 90 & tax is 10). Lets say you want to
>> give
>>>> Rs.
>>>>>> 20 discount on the product price which means that your order total
>> will
>>>> be
>>>>>> Rs. 80 with product price after discount as Rs. 70 (since discount is
>>>>>> applied after excluding tax from product price) & a total sales tax of
>>>> Rs.
>>>>>> 10.
>>>>>> 
>>>>>> Instead of Rs. 20 discount, you may give a discount including the
>> sales
>>>>>> tax on the price displayed to customer.
>>>>>> 
>>>>>> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 +
>>>> 10)
>>>>>> = 70
>>>>>> 
>>>>>> You may then apply the tax on the product price (note you don't need
>> to
>>>>>> set the 'taxable' flag I mentioned above) in such a manner that tax
>>>> amount
>>>>>> is added back to the order total.
>>>>>> 
>>>>>> Item Sub Total = Rs. 100
>>>>>> Discount = Rs. 30
>>>>>> Sales Tax = Rs. 10
>>>>>> 
>>>>>> Order Total = Rs. 80
>>>>>> 
>>>>>> HTH
>>>>>> 
>>>>>>> I want correct transaction details on my invoice.It should include
>>>>>> discount
>>>>>>> , tax and sales information.
>>>>>>> Tax is added in product price itself.Tax is not included in final
>> order
>>>>>>> amount.
>>>>>>> 
>>>>>>> Thanks
>>>>>>> Nandani
>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
>>>>>> 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 <vikasmayur@gmail.com
>>> 
>>>>>>>> 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 <vi...@gmail.com>
>>>>>>>>>>>> 
>>>>>>>>>>>>> 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 <vi...@gmail.com>
>>>>>>>>>>>>>> 
>>>>>>>>>>>>>>> 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
>>>>>>>>>>>>>>> 
>>>>>>>>>>>>>>> 
>>>>>>>>>>>>>>> 
>>>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>>> 
>>>>>>>>>> 
>>>>>>>> 
>>>>>>>> 
>>>>>> 
>>>>>> 
>>>> 
>>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

But with reference to my second post in this thread , my problem was to see
tax transaction (along with other transactions) in an invoice provided that
sales tax (VAT or CST etc) is already included in product price.


Regards
Nandani

On Wed, May 30, 2012 at 4:45 PM, Vikas Mayur <vi...@gmail.com> wrote:

> No, it won't because sales tax is not charged on the order.
>
> Regards
> Vikas
>
> On May 30, 2012, at 4:11 PM, Nandani Aggarwal wrote:
>
> > Vikas,
> >
> > Thank a lot ,What ever you explained is absolutely correct but by doing
> > taxable = 'N' and taxPromotions to 'N' are you able to see tax
> transaction
> > in your invoice  which shows the amount paid to tax authority.?
> >
> > Regards
> > Nandani
> >
> > On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <vi...@gmail.com>
> wrote:
> >
> >> Nandani,
> >>
> >> I have never tested this use case before and was curious to know how
> this
> >> works so I did few test by placing a sales order for product WG-1111 and
> >> DemoCustomer (note: the shipping address of this demo customer is Utah
> and
> >> OFBiz demo data have a tax authority setup for this state. I only did
> one
> >> change in the TaxAuthorityRateProduct entity by setting the attribute
> >> taxPromotions to 'N') from demo data once by setting the taxable flag on
> >> this product to 'Y' (although keeping it null is same) and once by
> setting
> >> the flag to 'N' . When taxable flag is 'N' the item was exempted from
> sales
> >> tax and when it is 'Y' or Null the sales tax for item is aded to the
> cart
> >> or order grand total.
> >>
> >> You may need to check your tax authority setup i.e. whether you have
> >> allowed tax on shipping and/or promotion. I doubt tax amount you are
> seeing
> >> in the grand total is either calculated on shipping and/or promotion.
> >>
> >> Below is code snip from the service calcTax in TaxAuthorityServices
> Class
> >> and conditional check on taxable flag determines whether the item
> should be
> >> tax exempted or not.
> >>
> >>               if (product != null && (product.get("taxable") == null ||
> >> (product.get("taxable") != null &&
> >> product.getBoolean("taxable").booleanValue()))) {
> >>                   taxable = taxable.add(itemAmount);
> >>               }
> >>
> >> HTH
> >>
> >> Regards
> >> Vikas
> >>
> >> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
> >>
> >>> Thank a lot for help and such a nice and simple explanation of answers.
> >>>
> >>> I tried your solutions with taxable field value as "Y"and "N" both.But
> in
> >>> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
> >> value
> >>> and (cart.getGrandTotal()) adds this tax in price(already including tax
> >>> value).
> >>>
> >>> I changed (cart.getGrandTotal()) so that it doesn't include tax but
> >> during
> >>> order creation it adds tax amount to total amount.It adds Order
> >>> adjustments (like discounts or tax).So should i change there as well or
> >>> there is another simple solution to it.
> >>>
> >>>
> >>> - Regards
> >>> Nandani
> >>>
> >>> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com>
> >> wrote:
> >>>
> >>>> Inline
> >>>>
> >>>> Regards
> >>>> Vikas
> >>>>
> >>>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
> >>>>
> >>>>> Thanks a lot for reply.
> >>>>>
> >>>>> I am facing some problem in maintaining sales tax transactions.In my
> >>>> case ,
> >>>>> on my ecommerce site i am displaying products including tax,
> >>>>> Problem :
> >>>>> 1. I am displaying product with price including tax.So when order is
> >>>> placed
> >>>>> and invoice is created then tax transactions display tax amount on
> >> price(
> >>>>> already including tax).
> >>>>> For example : Product "A" is displayed at price Rs100 (Price :90 +
> tax
> >> :
> >>>>> 10).
> >>>>> But on invoice transactions are :
> >>>>> Sales Transactions - Rs100
> >>>>> Tax Transactions - RS 10
> >>>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be
> Rs
> >>>>> 100/-
> >>>>> I want grand total should be sum of product's  subtotal.
> >>>>
> >>>> Check the 'taxable' field on Product entity, I think setting it to 'N'
> >> on
> >>>> individual products should exempt the product from further sales tax.
> >>>>
> >>>>>
> >>>>> 2. If i want to Apply discount on price excluding tax and then
> display
> >>>>> final amount (Price - discount) + tax.
> >>>>> But in ofbiz i am unable to display such price and grandtotal.
> >>>>>
> >>>>> Any idea ,  how above problems can be handled.?
> >>>>
> >>>> Discount and Tax should be created as Order Adjustments to display the
> >>>> prices in the manner you mentioned.
> >>>>
> >>>> I haven't done any testing but I think there may be solution OOTB with
> >>>> some minor modifications where required.
> >>>>
> >>>> Lets take your example for instance. Product 'A' displayed price is
> Rs.
> >>>> 100 (Actual product price is 90 & tax is 10). Lets say you want to
> give
> >> Rs.
> >>>> 20 discount on the product price which means that your order total
> will
> >> be
> >>>> Rs. 80 with product price after discount as Rs. 70 (since discount is
> >>>> applied after excluding tax from product price) & a total sales tax of
> >> Rs.
> >>>> 10.
> >>>>
> >>>> Instead of Rs. 20 discount, you may give a discount including the
> sales
> >>>> tax on the price displayed to customer.
> >>>>
> >>>> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 +
> >> 10)
> >>>> = 70
> >>>>
> >>>> You may then apply the tax on the product price (note you don't need
> to
> >>>> set the 'taxable' flag I mentioned above) in such a manner that tax
> >> amount
> >>>> is added back to the order total.
> >>>>
> >>>> Item Sub Total = Rs. 100
> >>>> Discount = Rs. 30
> >>>> Sales Tax = Rs. 10
> >>>>
> >>>> Order Total = Rs. 80
> >>>>
> >>>> HTH
> >>>>
> >>>>> I want correct transaction details on my invoice.It should include
> >>>> discount
> >>>>> , tax and sales information.
> >>>>> Tax is added in product price itself.Tax is not included in final
> order
> >>>>> amount.
> >>>>>
> >>>>> Thanks
> >>>>> Nandani
> >>>>>
> >>>>>
> >>>>>
> >>>>>
> >>>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
> >>>> 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 <vikasmayur@gmail.com
> >
> >>>>>> 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 <vi...@gmail.com>
> >>>>>>>>>>
> >>>>>>>>>>> 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 <vi...@gmail.com>
> >>>>>>>>>>>>
> >>>>>>>>>>>>> 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
> >>>>>>>>>>>>>
> >>>>>>>>>>>>>
> >>>>>>>>>>>>>
> >>>>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>
> >>>>>>>>
> >>>>>>>>
> >>>>>>
> >>>>>>
> >>>>
> >>>>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

No, it won't because sales tax is not charged on the order.

Regards
Vikas

On May 30, 2012, at 4:11 PM, Nandani Aggarwal wrote:

> Vikas,
> 
> Thank a lot ,What ever you explained is absolutely correct but by doing
> taxable = 'N' and taxPromotions to 'N' are you able to see tax transaction
> in your invoice  which shows the amount paid to tax authority.?
> 
> Regards
> Nandani
> 
> On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <vi...@gmail.com> wrote:
> 
>> Nandani,
>> 
>> I have never tested this use case before and was curious to know how this
>> works so I did few test by placing a sales order for product WG-1111 and
>> DemoCustomer (note: the shipping address of this demo customer is Utah and
>> OFBiz demo data have a tax authority setup for this state. I only did one
>> change in the TaxAuthorityRateProduct entity by setting the attribute
>> taxPromotions to 'N') from demo data once by setting the taxable flag on
>> this product to 'Y' (although keeping it null is same) and once by setting
>> the flag to 'N' . When taxable flag is 'N' the item was exempted from sales
>> tax and when it is 'Y' or Null the sales tax for item is aded to the cart
>> or order grand total.
>> 
>> You may need to check your tax authority setup i.e. whether you have
>> allowed tax on shipping and/or promotion. I doubt tax amount you are seeing
>> in the grand total is either calculated on shipping and/or promotion.
>> 
>> Below is code snip from the service calcTax in TaxAuthorityServices Class
>> and conditional check on taxable flag determines whether the item should be
>> tax exempted or not.
>> 
>>               if (product != null && (product.get("taxable") == null ||
>> (product.get("taxable") != null &&
>> product.getBoolean("taxable").booleanValue()))) {
>>                   taxable = taxable.add(itemAmount);
>>               }
>> 
>> HTH
>> 
>> Regards
>> Vikas
>> 
>> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
>> 
>>> Thank a lot for help and such a nice and simple explanation of answers.
>>> 
>>> I tried your solutions with taxable field value as "Y"and "N" both.But in
>>> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
>> value
>>> and (cart.getGrandTotal()) adds this tax in price(already including tax
>>> value).
>>> 
>>> I changed (cart.getGrandTotal()) so that it doesn't include tax but
>> during
>>> order creation it adds tax amount to total amount.It adds Order
>>> adjustments (like discounts or tax).So should i change there as well or
>>> there is another simple solution to it.
>>> 
>>> 
>>> - Regards
>>> Nandani
>>> 
>>> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com>
>> wrote:
>>> 
>>>> Inline
>>>> 
>>>> Regards
>>>> Vikas
>>>> 
>>>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
>>>> 
>>>>> Thanks a lot for reply.
>>>>> 
>>>>> I am facing some problem in maintaining sales tax transactions.In my
>>>> case ,
>>>>> on my ecommerce site i am displaying products including tax,
>>>>> Problem :
>>>>> 1. I am displaying product with price including tax.So when order is
>>>> placed
>>>>> and invoice is created then tax transactions display tax amount on
>> price(
>>>>> already including tax).
>>>>> For example : Product "A" is displayed at price Rs100 (Price :90 + tax
>> :
>>>>> 10).
>>>>> But on invoice transactions are :
>>>>> Sales Transactions - Rs100
>>>>> Tax Transactions - RS 10
>>>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
>>>>> 100/-
>>>>> I want grand total should be sum of product's  subtotal.
>>>> 
>>>> Check the 'taxable' field on Product entity, I think setting it to 'N'
>> on
>>>> individual products should exempt the product from further sales tax.
>>>> 
>>>>> 
>>>>> 2. If i want to Apply discount on price excluding tax and then display
>>>>> final amount (Price - discount) + tax.
>>>>> But in ofbiz i am unable to display such price and grandtotal.
>>>>> 
>>>>> Any idea ,  how above problems can be handled.?
>>>> 
>>>> Discount and Tax should be created as Order Adjustments to display the
>>>> prices in the manner you mentioned.
>>>> 
>>>> I haven't done any testing but I think there may be solution OOTB with
>>>> some minor modifications where required.
>>>> 
>>>> Lets take your example for instance. Product 'A' displayed price is Rs.
>>>> 100 (Actual product price is 90 & tax is 10). Lets say you want to give
>> Rs.
>>>> 20 discount on the product price which means that your order total will
>> be
>>>> Rs. 80 with product price after discount as Rs. 70 (since discount is
>>>> applied after excluding tax from product price) & a total sales tax of
>> Rs.
>>>> 10.
>>>> 
>>>> Instead of Rs. 20 discount, you may give a discount including the sales
>>>> tax on the price displayed to customer.
>>>> 
>>>> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 +
>> 10)
>>>> = 70
>>>> 
>>>> You may then apply the tax on the product price (note you don't need to
>>>> set the 'taxable' flag I mentioned above) in such a manner that tax
>> amount
>>>> is added back to the order total.
>>>> 
>>>> Item Sub Total = Rs. 100
>>>> Discount = Rs. 30
>>>> Sales Tax = Rs. 10
>>>> 
>>>> Order Total = Rs. 80
>>>> 
>>>> HTH
>>>> 
>>>>> I want correct transaction details on my invoice.It should include
>>>> discount
>>>>> , tax and sales information.
>>>>> Tax is added in product price itself.Tax is not included in final order
>>>>> amount.
>>>>> 
>>>>> Thanks
>>>>> Nandani
>>>>> 
>>>>> 
>>>>> 
>>>>> 
>>>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
>>>> 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 <vi...@gmail.com>
>>>>>> 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 <vi...@gmail.com>
>>>>>>>>>> 
>>>>>>>>>>> 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 <vi...@gmail.com>
>>>>>>>>>>>> 
>>>>>>>>>>>>> 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
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>> 
>>>>>>>> 
>>>>>>>> 
>>>>>> 
>>>>>> 
>>>> 
>>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

Vikas,

Thank a lot ,What ever you explained is absolutely correct but by doing
taxable = 'N' and taxPromotions to 'N' are you able to see tax transaction
in your invoice  which shows the amount paid to tax authority.?

Regards
Nandani

On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <vi...@gmail.com> wrote:

> Nandani,
>
> I have never tested this use case before and was curious to know how this
> works so I did few test by placing a sales order for product WG-1111 and
> DemoCustomer (note: the shipping address of this demo customer is Utah and
> OFBiz demo data have a tax authority setup for this state. I only did one
> change in the TaxAuthorityRateProduct entity by setting the attribute
> taxPromotions to 'N') from demo data once by setting the taxable flag on
> this product to 'Y' (although keeping it null is same) and once by setting
> the flag to 'N' . When taxable flag is 'N' the item was exempted from sales
> tax and when it is 'Y' or Null the sales tax for item is aded to the cart
> or order grand total.
>
> You may need to check your tax authority setup i.e. whether you have
> allowed tax on shipping and/or promotion. I doubt tax amount you are seeing
> in the grand total is either calculated on shipping and/or promotion.
>
> Below is code snip from the service calcTax in TaxAuthorityServices Class
> and conditional check on taxable flag determines whether the item should be
> tax exempted or not.
>
>                if (product != null && (product.get("taxable") == null ||
> (product.get("taxable") != null &&
> product.getBoolean("taxable").booleanValue()))) {
>                    taxable = taxable.add(itemAmount);
>                }
>
> HTH
>
> Regards
> Vikas
>
> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
>
> > Thank a lot for help and such a nice and simple explanation of answers.
> >
> > I tried your solutions with taxable field value as "Y"and "N" both.But in
> > both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
> value
> > and (cart.getGrandTotal()) adds this tax in price(already including tax
> > value).
> >
> > I changed (cart.getGrandTotal()) so that it doesn't include tax but
> during
> > order creation it adds tax amount to total amount.It adds Order
> > adjustments (like discounts or tax).So should i change there as well or
> > there is another simple solution to it.
> >
> >
> > - Regards
> >  Nandani
> >
> > On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com>
> wrote:
> >
> >> Inline
> >>
> >> Regards
> >> Vikas
> >>
> >> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
> >>
> >>> Thanks a lot for reply.
> >>>
> >>> I am facing some problem in maintaining sales tax transactions.In my
> >> case ,
> >>> on my ecommerce site i am displaying products including tax,
> >>> Problem :
> >>> 1. I am displaying product with price including tax.So when order is
> >> placed
> >>> and invoice is created then tax transactions display tax amount on
> price(
> >>> already including tax).
> >>> For example : Product "A" is displayed at price Rs100 (Price :90 + tax
> :
> >>> 10).
> >>> But on invoice transactions are :
> >>> Sales Transactions - Rs100
> >>> Tax Transactions - RS 10
> >>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
> >>> 100/-
> >>> I want grand total should be sum of product's  subtotal.
> >>
> >> Check the 'taxable' field on Product entity, I think setting it to 'N'
> on
> >> individual products should exempt the product from further sales tax.
> >>
> >>>
> >>> 2. If i want to Apply discount on price excluding tax and then display
> >>> final amount (Price - discount) + tax.
> >>> But in ofbiz i am unable to display such price and grandtotal.
> >>>
> >>> Any idea ,  how above problems can be handled.?
> >>
> >> Discount and Tax should be created as Order Adjustments to display the
> >> prices in the manner you mentioned.
> >>
> >> I haven't done any testing but I think there may be solution OOTB with
> >> some minor modifications where required.
> >>
> >> Lets take your example for instance. Product 'A' displayed price is Rs.
> >> 100 (Actual product price is 90 & tax is 10). Lets say you want to give
> Rs.
> >> 20 discount on the product price which means that your order total will
> be
> >> Rs. 80 with product price after discount as Rs. 70 (since discount is
> >> applied after excluding tax from product price) & a total sales tax of
> Rs.
> >> 10.
> >>
> >> Instead of Rs. 20 discount, you may give a discount including the sales
> >> tax on the price displayed to customer.
> >>
> >> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 +
> 10)
> >> = 70
> >>
> >> You may then apply the tax on the product price (note you don't need to
> >> set the 'taxable' flag I mentioned above) in such a manner that tax
> amount
> >> is added back to the order total.
> >>
> >> Item Sub Total = Rs. 100
> >> Discount = Rs. 30
> >> Sales Tax = Rs. 10
> >>
> >> Order Total = Rs. 80
> >>
> >> HTH
> >>
> >>> I want correct transaction details on my invoice.It should include
> >> discount
> >>> , tax and sales information.
> >>> Tax is added in product price itself.Tax is not included in final order
> >>> amount.
> >>>
> >>> Thanks
> >>> Nandani
> >>>
> >>>
> >>>
> >>>
> >>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
> >> 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 <vi...@gmail.com>
> >>>> 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 <vi...@gmail.com>
> >>>>>>>>
> >>>>>>>>> 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 <vi...@gmail.com>
> >>>>>>>>>>
> >>>>>>>>>>> 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
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>
> >>>>>>
> >>>>>>
> >>>>
> >>>>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

Nandani,

I have never tested this use case before and was curious to know how this works so I did few test by placing a sales order for product WG-1111 and DemoCustomer (note: the shipping address of this demo customer is Utah and OFBiz demo data have a tax authority setup for this state. I only did one change in the TaxAuthorityRateProduct entity by setting the attribute taxPromotions to 'N') from demo data once by setting the taxable flag on this product to 'Y' (although keeping it null is same) and once by setting the flag to 'N' . When taxable flag is 'N' the item was exempted from sales tax and when it is 'Y' or Null the sales tax for item is aded to the cart or order grand total.

You may need to check your tax authority setup i.e. whether you have allowed tax on shipping and/or promotion. I doubt tax amount you are seeing in the grand total is either calculated on shipping and/or promotion.

Below is code snip from the service calcTax in TaxAuthorityServices Class and conditional check on taxable flag determines whether the item should be tax exempted or not.

                if (product != null && (product.get("taxable") == null || (product.get("taxable") != null && product.getBoolean("taxable").booleanValue()))) {
                    taxable = taxable.add(itemAmount);
                }

HTH

Regards
Vikas

On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:

> Thank a lot for help and such a nice and simple explanation of answers.
> 
> I tried your solutions with taxable field value as "Y"and "N" both.But in
> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax value
> and (cart.getGrandTotal()) adds this tax in price(already including tax
> value).
> 
> I changed (cart.getGrandTotal()) so that it doesn't include tax but during
> order creation it adds tax amount to total amount.It adds Order
> adjustments (like discounts or tax).So should i change there as well or
> there is another simple solution to it.
> 
> 
> - Regards
>  Nandani
> 
> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com> wrote:
> 
>> Inline
>> 
>> Regards
>> Vikas
>> 
>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
>> 
>>> Thanks a lot for reply.
>>> 
>>> I am facing some problem in maintaining sales tax transactions.In my
>> case ,
>>> on my ecommerce site i am displaying products including tax,
>>> Problem :
>>> 1. I am displaying product with price including tax.So when order is
>> placed
>>> and invoice is created then tax transactions display tax amount on price(
>>> already including tax).
>>> For example : Product "A" is displayed at price Rs100 (Price :90 + tax :
>>> 10).
>>> But on invoice transactions are :
>>> Sales Transactions - Rs100
>>> Tax Transactions - RS 10
>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
>>> 100/-
>>> I want grand total should be sum of product's  subtotal.
>> 
>> Check the 'taxable' field on Product entity, I think setting it to 'N' on
>> individual products should exempt the product from further sales tax.
>> 
>>> 
>>> 2. If i want to Apply discount on price excluding tax and then display
>>> final amount (Price - discount) + tax.
>>> But in ofbiz i am unable to display such price and grandtotal.
>>> 
>>> Any idea ,  how above problems can be handled.?
>> 
>> Discount and Tax should be created as Order Adjustments to display the
>> prices in the manner you mentioned.
>> 
>> I haven't done any testing but I think there may be solution OOTB with
>> some minor modifications where required.
>> 
>> Lets take your example for instance. Product 'A' displayed price is Rs.
>> 100 (Actual product price is 90 & tax is 10). Lets say you want to give Rs.
>> 20 discount on the product price which means that your order total will be
>> Rs. 80 with product price after discount as Rs. 70 (since discount is
>> applied after excluding tax from product price) & a total sales tax of Rs.
>> 10.
>> 
>> Instead of Rs. 20 discount, you may give a discount including the sales
>> tax on the price displayed to customer.
>> 
>> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 + 10)
>> = 70
>> 
>> You may then apply the tax on the product price (note you don't need to
>> set the 'taxable' flag I mentioned above) in such a manner that tax amount
>> is added back to the order total.
>> 
>> Item Sub Total = Rs. 100
>> Discount = Rs. 30
>> Sales Tax = Rs. 10
>> 
>> Order Total = Rs. 80
>> 
>> HTH
>> 
>>> I want correct transaction details on my invoice.It should include
>> discount
>>> , tax and sales information.
>>> Tax is added in product price itself.Tax is not included in final order
>>> amount.
>>> 
>>> Thanks
>>> Nandani
>>> 
>>> 
>>> 
>>> 
>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
>> 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 <vi...@gmail.com>
>>>> 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 <vi...@gmail.com>
>>>>>>>> 
>>>>>>>>> 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 <vi...@gmail.com>
>>>>>>>>>> 
>>>>>>>>>>> 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
>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>> 
>>>>>>>>> 
>>>>>>> 
>>>>>> 
>>>>>> 
>>>> 
>>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

Thank a lot for help and such a nice and simple explanation of answers.

I tried your solutions with taxable field value as "Y"and "N" both.But in
both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax value
and (cart.getGrandTotal()) adds this tax in price(already including tax
value).

I changed (cart.getGrandTotal()) so that it doesn't include tax but during
order creation it adds tax amount to total amount.It adds Order
 adjustments (like discounts or tax).So should i change there as well or
there is another simple solution to it.


- Regards
  Nandani

On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <vi...@gmail.com> wrote:

> Inline
>
> Regards
> Vikas
>
> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
>
> > Thanks a lot for reply.
> >
> > I am facing some problem in maintaining sales tax transactions.In my
> case ,
> > on my ecommerce site i am displaying products including tax,
> > Problem :
> > 1. I am displaying product with price including tax.So when order is
> placed
> > and invoice is created then tax transactions display tax amount on price(
> > already including tax).
> > For example : Product "A" is displayed at price Rs100 (Price :90 + tax :
> > 10).
> > But on invoice transactions are :
> > Sales Transactions - Rs100
> > Tax Transactions - RS 10
> > Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
> > 100/-
> > I want grand total should be sum of product's  subtotal.
>
> Check the 'taxable' field on Product entity, I think setting it to 'N' on
> individual products should exempt the product from further sales tax.
>
> >
> > 2. If i want to Apply discount on price excluding tax and then display
> > final amount (Price - discount) + tax.
> > But in ofbiz i am unable to display such price and grandtotal.
> >
> > Any idea ,  how above problems can be handled.?
>
> Discount and Tax should be created as Order Adjustments to display the
> prices in the manner you mentioned.
>
> I haven't done any testing but I think there may be solution OOTB with
> some minor modifications where required.
>
> Lets take your example for instance. Product 'A' displayed price is Rs.
> 100 (Actual product price is 90 & tax is 10). Lets say you want to give Rs.
> 20 discount on the product price which means that your order total will be
> Rs. 80 with product price after discount as Rs. 70 (since discount is
> applied after excluding tax from product price) & a total sales tax of Rs.
> 10.
>
> Instead of Rs. 20 discount, you may give a discount including the sales
> tax on the price displayed to customer.
>
> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 + 10)
> = 70
>
> You may then apply the tax on the product price (note you don't need to
> set the 'taxable' flag I mentioned above) in such a manner that tax amount
> is added back to the order total.
>
> Item Sub Total = Rs. 100
> Discount = Rs. 30
> Sales Tax = Rs. 10
>
> Order Total = Rs. 80
>
> HTH
>
> > I want correct transaction details on my invoice.It should include
> discount
> > , tax and sales information.
> > Tax is added in product price itself.Tax is not included in final order
> > amount.
> >
> > Thanks
> > Nandani
> >
> >
> >
> >
> > On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com>
> 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 <vi...@gmail.com>
> >> 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 <vi...@gmail.com>
> >>>>>>
> >>>>>>> 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 <vi...@gmail.com>
> >>>>>>>>
> >>>>>>>>> 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
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>
> >>>>
> >>>>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

Inline

Regards
Vikas

On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:

> Thanks a lot for reply.
> 
> I am facing some problem in maintaining sales tax transactions.In my case ,
> on my ecommerce site i am displaying products including tax,
> Problem :
> 1. I am displaying product with price including tax.So when order is placed
> and invoice is created then tax transactions display tax amount on price(
> already including tax).
> For example : Product "A" is displayed at price Rs100 (Price :90 + tax :
> 10).
> But on invoice transactions are :
> Sales Transactions - Rs100
> Tax Transactions - RS 10
> Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
> 100/-
> I want grand total should be sum of product's  subtotal.

Check the 'taxable' field on Product entity, I think setting it to 'N' on individual products should exempt the product from further sales tax.

> 
> 2. If i want to Apply discount on price excluding tax and then display
> final amount (Price - discount) + tax.
> But in ofbiz i am unable to display such price and grandtotal.
> 
> Any idea ,  how above problems can be handled.?

Discount and Tax should be created as Order Adjustments to display the prices in the manner you mentioned.

I haven't done any testing but I think there may be solution OOTB with some minor modifications where required.

Lets take your example for instance. Product 'A' displayed price is Rs. 100 (Actual product price is 90 & tax is 10). Lets say you want to give Rs. 20 discount on the product price which means that your order total will be Rs. 80 with product price after discount as Rs. 70 (since discount is applied after excluding tax from product price) & a total sales tax of Rs. 10.

Instead of Rs. 20 discount, you may give a discount including the sales tax on the price displayed to customer.

Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 + 10) = 70

You may then apply the tax on the product price (note you don't need to set the 'taxable' flag I mentioned above) in such a manner that tax amount is added back to the order total.

Item Sub Total = Rs. 100
Discount = Rs. 30
Sales Tax = Rs. 10

Order Total = Rs. 80

HTH

> I want correct transaction details on my invoice.It should include discount
> , tax and sales information.
> Tax is added in product price itself.Tax is not included in final order
> amount.
> 
> Thanks
> Nandani
> 
> 
> 
> 
> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com> 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 <vi...@gmail.com>
>> 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 <vi...@gmail.com>
>>>>>> 
>>>>>>> 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 <vi...@gmail.com>
>>>>>>>> 
>>>>>>>>> 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
>>>>>>>>> 
>>>>>>>>> 
>>>>>>>>> 
>>>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>> 
>>>> 
>>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

Thanks a lot for reply.

I am facing some problem in maintaining sales tax transactions.In my case ,
on my ecommerce site i am displaying products including tax,
Problem :
1. I am displaying product with price including tax.So when order is placed
and invoice is created then tax transactions display tax amount on price(
already including tax).
For example : Product "A" is displayed at price Rs100 (Price :90 + tax :
10).
But on invoice transactions are :
Sales Transactions - Rs100
Tax Transactions - RS 10
Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
100/-
I want grand total should be sum of product's  subtotal.

2. If i want to Apply discount on price excluding tax and then display
final amount (Price - discount) + tax.
But in ofbiz i am unable to display such price and grandtotal.

Any idea ,  how above problems can be handled.?
I want correct transaction details on my invoice.It should include discount
, tax and sales information.
Tax is added in product price itself.Tax is not included in final order
amount.

Thanks
Nandani




On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <vi...@gmail.com> 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 <vi...@gmail.com>
> 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 <vi...@gmail.com>
> >>>>
> >>>>> 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 <vi...@gmail.com>
> >>>>>>
> >>>>>>> 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
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>>>
> >>>>>
> >>>>>
> >>>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Rajbir Saini <ra...@yahoo.com>]

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<vi...@gmail.com>  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<vi...@gmail.com>
>> 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<vi...@gmail.com>
>>>>>>
>>>>>>> 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<vi...@gmail.com>
>>>>>>>>
>>>>>>>>> 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,
>>
>>
>>

Re: Chart of Accounts Q's

[Deepak Agarwal <da...@gmail.com>]

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 <vi...@gmail.com> 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 <vi...@gmail.com>
> 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 <vi...@gmail.com>
> >>>>
> >>>>> 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 <vi...@gmail.com>
> >>>>>>
> >>>>>>> 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,
>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

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 <vi...@gmail.com> 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 <vi...@gmail.com>
>>>> 
>>>>> 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 <vi...@gmail.com>
>>>>>> 
>>>>>>> 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
>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>> 
>>>>> 
>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Nandani Aggarwal <na...@paxcel.net>]

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 <vi...@gmail.com> 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 <vi...@gmail.com>
> >>
> >>> 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 <vi...@gmail.com>
> >>>>
> >>>>> 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
> >>>>>
> >>>>>
> >>>>>
> >>>>>
> >>>
> >>>
> >
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

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 <vi...@gmail.com>
>> 
>>> 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 <vi...@gmail.com>
>>>> 
>>>>> 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
>>>>> 
>>>>> 
>>>>> 
>>>>> 
>>> 
>>> 
> 

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

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 <vi...@gmail.com>
> 
>> 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 <vi...@gmail.com>
>>> 
>>>> 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
>>>> 
>>>> 
>>>> 
>>>> 
>> 
>> 

Re: Chart of Accounts Q's

[Pierre Smits <pi...@gmail.com>]

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 <vi...@gmail.com>

> 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 <vi...@gmail.com>
> >
> >> 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
> >>
> >>
> >>
> >>
>
>

Re: Chart of Accounts Q's

[Vikas Mayur <vi...@gmail.com>]

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 <vi...@gmail.com>
> 
>> 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
>> 
>> 
>> 
>> 

Re: Chart of Accounts Q's

[Pierre Smits <pi...@gmail.com>]

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 <vi...@gmail.com>

> 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
>
>
>
>