Documentation, Transactions, recording

ERPNext User Forum
1

i am now in the process of data entry, and also trying to figure out
when and how transactions are recorded.’

Something that should be part of the “Core Documentation”

Let take the Purchasing process:

  1. Purchase Requisition (Indent)>> I have not used this and guess this
    an “internal document” not affecting ledgers or inventory.
  2. Purchase order>> is recorded under stock level; but not in stock
    ledger
  3. Purchase receipt: Stock levels (ledger) is updated; Tax information
    is recorded in the tax accounts?? The supplier account is credited;
  4. Purchase Invoice ???
    5)Payment voucher: Supplier account debited???

Well, I do believe this is fundamental information for everyone using
the system, that should be correctly documented.

My big handicap is that I have no accounting background at all, so I’m
studying the documentation available on the web (wikipedia etc)

The standard recording for a purchase seems to be : Increase inventory
and decrease Cash/bank, or in accounts language, credit the cash and
debit the inventory (???).

There exist an standard account in erpnext named assets>current
assets> stock at hand , but if i examine the ledger it is empty.

So, apologies if I’m wrong, the debit/credit recording of erpnext is
not using an “inventory value ledger”

I appreciate that the Erpnext team has started document the working of
Erpnext more structurally. I believe an good description of what is
happening if one pushes the “submit botton” is a must & priority.

2

Robert,

Thanks again for raising a lot of important issues,

Replies below:

On 28-Feb-2012, at 9:32 PM, robert wrote:

i am now in the process of data entry, and also trying to figure out
when and how transactions are recorded.’

Something that should be part of the “Core Documentation”

Let take the Purchasing process:

  1. Purchase Requisition (Indent)>> I have not used this and guess this
    an “internal document” not affecting ledgers or inventory.

correct

  1. Purchase order>> is recorded under stock level; but not in stock
    ledger

correct - it updates the “ordered” balance of an account so that you do not “double order”

  1. Purchase receipt: Stock levels (ledger) is updated; Tax information

Only stock is updated, tax information is only for item valuation purpose

is recorded in the tax accounts?? The supplier account is credited;
4) Purchase Invoice ???

Accounting entries are done - supplier credited, tax, expense, asset updated

5)Payment voucher: Supplier account debited???

Accounting, supplier debited, bank credited

Well, I do believe this is fundamental information for everyone using
the system, that should be correctly documented.

My big handicap is that I have no accounting background at all, so I’m
studying the documentation available on the web (wikipedia etc)

The standard recording for a purchase seems to be : Increase inventory
and decrease Cash/bank, or in accounts language, credit the cash and
debit the inventory (???).

There exist an standard account in erpnext named assets>current
assets> stock at hand , but if i examine the ledger it is empty.

This is a todo area. Right now, you have to bill your purchases directly under cost of goods sold. And at the end of the accounting period, debit your stock and credit expenses with a JV.

Ideally, all Purchase Invoices should be debited to “stock at hand” and when you “consume” them via an “Stock entry” or “Delivery Note”, it should be transferred to “Cost of Goods Sold” or “Purchases”

We still have to fix this, at the moment, the work-around will have to be used.

So, apologies if I’m wrong, the debit/credit recording of erpnext is
not using an “inventory value ledger”

I appreciate that the Erpnext team has started document the working of
Erpnext more structurally. I believe an good description of what is
happening if one pushes the “submit botton” is a must & priority.