Accounting and general Ledger (France)

[hiousi]

Hi,

May I find a french accountant using ERNnext?
I try to explain in english with translated accounts names coming from the France CoA .

When I record a simple purchase invoice with a total amount of €10 and checked “stock update”, what I have in General Ledger is:

Stock account 10.00 DR (31 stock matières premières)
Creditors 10.00 CR (401 fournisseurs)

what I expect:

Stock account 10.00 DR (31 stock matières premières)
Change in stocks 10.00 CR (603 variation de stock)
Inventory item purchases, charge account 10.00 DR (601 achat de matières premières)
Creditors 10.00 CR 10.00 CR (401 fournisseurs)

I’m quite sure I missed something in configuration, but I can not understand what.

[Pawan]

Please check the default accounts you have set under , Set Up > Company

[hiousi]

4081… is for “Stock received but not billed”
6081… is for “expenses included in valuation”
6031… is for “stock ajustement”

those entries are not used in ledger when I do a simple purchase invoice with “stock update”.

[Pawan]

This is a default entry when a purchase invoice is created,you may want to check you “Default Payable Account” set at company level as well

Thanks

[Chude_Osiegbu]

I’m not a French accountant but I’ve seen this before in other systems. Your expected scenario is common in France and some EU countries and is called purchase accounting. It’s helpful when you want to track details of accessory costs (like freight and tax) that contribute to the final value of stock that you buy.

Looking through the code, I suspect ERPNext does not cater to this French/EU scenario yet. To do so there would need to be a configuration setting that gives the option of turning on or off purchase accounting (EU system vs British/American system)

Activating purchase accounting would then give the following postings during receipt of an item into stock:

DR Stock (B/S) 500
CR Purchase Offsetting Account (P&L) 500
DR Purchase Account Stock (P&L) 400
DR Purchase Account Freight (P&L) 100
CR GRNI_Stock (B/S) 400
CR GRNI_Freight (B/S) 100

Deactivating would give the following postings given the same action:

DR Stock (B/S) 500
CR GRNI_Stock (B/S) 400
CR GRNI_Freight (B/S) 100

Edit:
This applies only to the scenario where we are procuring into Stock. I think that one advantage of this is that the value of the material procured into stock passes through P&L and can therefore be controlled by a budget on the cost account that is assigned to the P&L line item.

@rushabh_mehta I hope I’m not mis-informing when I say this is not yet available.

Regards,
cksgb

[Chude_Osiegbu]

They will only be used in a goods receipt scenario where the goods receipt comes before purchase invoice.

When a purchase invoice is then received, they will follow @Pawan example above Accounting and general Ledger (France) - #4 by Pawan

Regards,
cksgb

[hiousi]

I did the whole process as suggested. From purchase to shipping manufactured goods.
I gave the general ledger to an french accountant. He’s ok with it

for french users here is the ledger, I hope it can help

1/ Bulletin de livraison de marchandise. 100 bidules à 0.75€/pièce.
311 matières premières , débit 75.00€
4081 factures non parvenues crédit 75.00€

2/  facture du fournisseur
4081 factures non parvenues débit 75.00€
4011 fournisseurs crédit 75.00€

3/ bon de livraison pour 40 bidules à 3€/pièce soit 120€,  
601 achats stockés, mat premières débit 30.00€
311 matières premieres,  crédit 30.00€

4/ facture pour le client (120€)
4111 client, débit 120.000€
701 vente de produits finis crédit 120.00€

[Pawan]

Could you also share a screen shot of your Set Up > Company ?

[hiousi]

@pawan

[Chude_Osiegbu]

Hi Hiousi,

What about the 602/603 posting for purchase account/stock variation during receipt of material into stock? It is not compulsory in French accounting?

Regards,
cksgb

[hiousi]

@Chude_Osiegbu

You are talking about account 603 called in France “variation de stock”, strickly speaking it does not mean “stock ajustment account”. There is an error in my stock settings (see screenshot)

I’m not an accountant, I’m not sure that I understant all what I do.

I try to connect both accountant logic and erpnext process. I make a full buy to sell cycle and then I send the general ledger to my professional accountant, and if he is ok with it, I’m happy

He explained that I do not need the 603 account for perpetual inventory.That account is only used when companies do a periodic inventory at the end of fiscal year. Now I need to know wich account to use for “stock ajustement account”