Experts, couldn’t find any previous answers to this, so I hope someone here can help me.
What I would like to achieve is custom costing/accounting rules, when issuing invoices (or delivery notes), to cover for administrational “costs”.
These costs should trigger a double entry in the P&L, given no true costs actually are incurred.
This mainly to capture “complexity costs” or “small order” costs, basically covering for the administration involved (as well as organizing logistics etc.).
Does ERPNext customization facilitate in this in any way? Basically adding administrational costs on invoice or delivery note level, to reduce the perceived profitability.
Given they are no true costs, I understand I would need both the expense as an offset account.
Ok so I’m not an accountant but can give you some basic guidelines. You shouldn’t worry so much about the profit on the particular document as that cost is the direct cost. This is just to journal the entry. Your end of year balance will take into account all other expenses.
Secondly there are ways to increase the cost of your stocked goods through landed cost voucher for example or production of you manufacture. This will help you increase the direct cost of the goods you are selling.
I would leave this part alone not to look for any shortcuts. And focus on having the most accurate cost through landed cost voucher or production.
Understand your point, and from accounting perspective you are correct. That’s also why I mentioned the offset accounts; basically there is no P&L impact.
However, from controlling point of view, it allows to create a mark-up to cover for “complexity costs”, and give better view on true profitability of the customer.
Overhead costs may not be included in direct costs; that is the machine tariffs etc. do not include overhead labor (IFRS) and it also wouldnt make sense.
But by capturing some of these costs, it would provide better view on profitability of transactions.
I’m trying some things and will reply later if I’m able to pull it off.