ERPNext Account Inventory Integration

system · October 12, 2012, 5:12am

Hi everyone,

We have prepared a document on how we intend to implement Account Inventory Integration in ERPNext.

Please have a look at it here: https://github.com/webnotes/erpnext/wiki/Account-Inventory-Integration

Please share your experience, comments and suggestions.

Thanks,

ERPNext Team.

–

bogdan_dumitrasconiu · October 16, 2012, 12:57pm

Hello,

I looked through the document and have some questions, starting with Purchase:

What do you mean by Total and Valuation?
(eg.

Shipping Charges = 100 ; Total and Valuation
VAT = 120 ; Total
Customs Duty = 150 ; Valuation)

Please confirm my understanding of the calculations, as added below in blue:

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Purchase Receipt

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Account

Debit

Credit

Stock In Hand

500 + 100 + 150 = 750

(Items Amount + Shipping Charges + Customs Duty)

0

Stock Received But Not Billed

0

750

<style type="text/css">
<!--
	@page { margin: 0.79in }
	P { margin-bottom: 0.08in }
-->
</style>

Stock value = 750

<style type="text/css">
<!--
	@page { margin: 0.79in }
	H3 { margin-bottom: 0.08in }
	H3.cjk { font-family: "Droid Sans" }
	H3.ctl { font-family: "Lohit Hindi" }
	P { margin-bottom: 0.08in }
-->
</style>

Purchase Invoice

<style type="text/css">
<!--
	@page { margin: 0.79in }
	TH P { margin-bottom: 0in }
	TD P { margin-bottom: 0in }
	P { margin-bottom: 0.08in }
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Account	Debit	Credit
East Wind Inc.	0	500 + 100 + 120 = 720 (Items Amount + Shipping Charges + VAT)
Stock Received But Not Billed	500 + 100 + 150 = 750 (Items Amount + Shipping Charges + Customs Duty)	0
Shipping Charges	100	0
VAT	120	0
Valuation Price Difference	0	100 + 150 = 250 (Shipping Charges + Customs Duty)

<style type="text/css">
<!--
	@page { margin: 0.79in }
	P { margin-bottom: 0.08in }
-->
</style>

Stock value = ?

Regards,

Bogdan

<style type="text/css">
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	@page { margin: 0.79in }
	TH P { margin-bottom: 0in }
	TD P { margin-bottom: 0in }
	P { margin-bottom: 0.08in }
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</style></p>

–

umair · October 16, 2012, 1:10pm

Dear Bogdan,

You got calculate absolutely right.

The stock value in scenario considered is 750. The Stock value is calculated in Purchase Receipt.

–
Thanks and Regards,

Umair Sayyed
um…@erpnext.com
www.erpnext.com

On Tue, Oct 16, 2012 at 6:27 PM, Bogdan <bo…@gmail.com> wrote:

Hello,

I looked through the document and have some questions, starting with Purchase:

What do you mean by Total and Valuation?
(eg.
Shipping Charges = 100 ; Total and Valuation

VAT = 120 ; Total
Customs Duty = 150 ; Valuation)

Please confirm my understanding of the calculations, as added below in blue:

Purchase Receipt

Account

Debit

Credit

Stock In Hand

500 + 100 + 150 = 750

(Items Amount + Shipping Charges + Customs Duty)

0

Stock Received But Not Billed

0

750

Stock value = 750

Purchase Invoice

Account

Debit

Credit

East Wind Inc.

0

500 + 100 + 120 = 720

(Items Amount + Shipping Charges + VAT)

Stock Received But Not Billed

500 + 100 + 150 = 750

(Items Amount + Shipping Charges + Customs Duty)

0

Shipping Charges

100

0

VAT

120

0

Valuation Price Difference

0

100 + 150 = 250

(Shipping Charges + Customs Duty)

Stock value = ?

Regards,
Bogdan

</p>

–

bogdan_dumitrasconiu · October 16, 2012, 1:29pm

Hello,

What about my first question:

What do you mean by Total and Valuation?
(eg.

Shipping Charges = 100 ; Total and Valuation
VAT = 120 ; Total
Customs Duty = 150 ; Valuation)

Regarding stock value, in Purchase invoice posting to GL, I noticed that there is a Valuation Price Difference account.
I also read your answer here:https://groups.google.com/forum/?fromgroups=#!topic/erpnext-developer-forum/4SHayTyYdW0

As I know, Purchase Receipt is used for stock update (quantity) and estimated value.
(in GL use an Estimated Stock In hand account)
Actual (final) value should be based on Purchase Invoice, shouldn’t it?
(in GL make a correction entry with initial Estimated value, then use the Stock In hand account)

So, if the value on Purchase Invoice is different than the one in Purchase receipt, the new stock value is…?

Regards,
Bogdan

–

rmehta · October 17, 2012, 6:57am

Hello,

What about my first question:

What do you mean by Total and Valuation?
(eg.
Shipping Charges = 100 ; Total and Valuation
VAT = 120 ; Total
Customs Duty = 150 ; Valuation)
Regarding stock value, in Purchase invoice posting to GL, I noticed that there is a Valuation Price Difference account.
I also read your answer here:https://groups.google.com/forum/?fromgroups=#!topic/erpnext-developer-forum/4SHayTyYdW0

As I know, Purchase Receipt is used for stock update (quantity) and estimated value.
(in GL use an Estimated Stock In hand account)
Actual (final) value should be based on Purchase Invoice, shouldn't it?
(in GL make a correction entry with initial Estimated value, then use the Stock In hand account)

So, if the value on Purchase Invoice is different than the one in Purchase receipt, the new stock value is...?

Regards,
Bogdan

–

nabin · October 17, 2012, 7:57am

Dear Bogdan,

Thanks for your valuable suggestion.

1. "Total and Valuation" means the cost is included in invoiced amount by supplier and at the same time it should be included in item valuation rate.

2. Yes, you are right. The system should consider the difference value of Purchase Receipt and Purchase Invoice and make a difference entry against "Stock In Hand" and "Valuation Price Difference" accounts.

The difference can be due to changes in item rate, exchange rate or taxes and charges amount. Item Valuation Rate should also be recalculated considering difference amount.

Regards,
Nabin Hait

On Wed, Oct 17, 2012 at 12:27 PM, Rushabh Mehta <rm…@gmail.com> wrote:

Hello,

What about my first question:

What do you mean by Total and Valuation?
(eg.
Shipping Charges = 100 ; Total and Valuation

VAT = 120 ; Total
Customs Duty = 150 ; Valuation)
Regarding stock value, in Purchase invoice posting to GL, I noticed that there is a Valuation Price Difference account.
I also read your answer here:https://groups.google.com/forum/?fromgroups=#!topic/erpnext-developer-forum/4SHayTyYdW0

As I know, Purchase Receipt is used for stock update (quantity) and estimated value.
(in GL use an Estimated Stock In hand account)
Actual (final) value should be based on Purchase Invoice, shouldn't it?
(in GL make a correction entry with initial Estimated value, then use the Stock In hand account)

So, if the value on Purchase Invoice is different than the one in Purchase receipt, the new stock value is...?

Regards,
Bogdan

–