As
you know that you are working on the new features for connection the
warehouse to the accounting, I would like to specify that we have
divided our warehouse in different types. It can probably be the
situation of other users that have similar needs.
For example we have a stock that is the official stock where we put products that we receive and sell.
We
have also created a warehouse for products that are in our showroom and
are second hand. Often we take out these products to give to customers
for a period of time and then we take back in stock. When doing this,
will we have an issue with the value of stock? How can it be recorded
when the machine is given in consignment?
This happens also for other warehouses, that we use in fact when we give free products or samples… etc..
How will this influence the stock value and how to connect it to the accounting part correctly?
Thanks for pointing out and discussing the scenario. I am posting the discussion in erpnext user forum for other users.
When
some products goes out for some period in consignment, you can make a
stock transfer from your warehouse to customer’s warehouse. It does not
have any effect in “Stock In Value”, because the stock is still your
asset and you are charging separately for the consignment.
And in
case of free or sample products, you can make delivery note with zero
rate. “Stock In Hand” account will be credited by the valuation amount
of that product and “Stock Delivered But Not Billed” account will be
debited. When customer returns sample product the reverse entry will be
made. If you send invoice to customer for free product, the value will
be booked into expense (Cost of Goods Sold) account.
Regards, Nabin Hait
On Wednesday, October 17, 2012 2:43:20 PM UTC+5:30, Nabin Hait wrote:
Dear all,
As
you know that you are working on the new features for connection the
warehouse to the accounting, I would like to specify that we have
divided our warehouse in different types. It can probably be the
situation of other users that have similar needs.
For example we have a stock that is the official stock where we put products that we receive and sell.
We
have also created a warehouse for products that are in our showroom and
are second hand. Often we take out these products to give to customers
for a period of time and then we take back in stock. When doing this,
will we have an issue with the value of stock? How can it be recorded
when the machine is given in consignment?
This happens also for other warehouses, that we use in fact when we give free products or samples… etc…
How will this influence the stock value and how to connect it to the accounting part correctly?
And in case of free or sample products, you can make delivery note with zero rate. “Stock In Hand” account will be credited by the valuation amount of that product and “Stock Delivered But Not Billed” account will be debited. When customer returns sample product the reverse entry will be made. If you send invoice to customer for free product, the value will be booked into expense (Cost of Goods Sold) account.*
May be this could be out a bit further; We, does give away very regulary. Now I have to manually enter this as a discount. Ideally, the use could define in systems set up, how discounts (or zero price) is treated, and once you type a zero the sales ietm is automatically recorded in a special account. Similar for discounts.
Further to this, you know that the whole issue of discounts is quite shaky with repect to sales tax/VAT calculations. As this seems all related this (tax & discount) should also be re-coded.
rgds robert
On Wednesday, October 17, 2012 11:13:20 AM UTC+2, Nabin Hait wrote:
Dear all,
As
you know that you are working on the new features for connection the
warehouse to the accounting, I would like to specify that we have
divided our warehouse in different types. It can probably be the
situation of other users that have similar needs.
For example we have a stock that is the official stock where we put products that we receive and sell.
We
have also created a warehouse for products that are in our showroom and
are second hand. Often we take out these products to give to customers
for a period of time and then we take back in stock. When doing this,
will we have an issue with the value of stock? How can it be recorded
when the machine is given in consignment?
This happens also for other warehouses, that we use in fact when we give free products or samples… etc…
How will this influence the stock value and how to connect it to the accounting part correctly?
