Hi everyone,
I am getting free samples from my supplier, which in return I will give this free sample to my customer (selected ones).
How could I do this in erpnext? Any tutorial or videos on this?
Any tips? Thanks.
I think you can set the rate as “0”
say i have product “iphone 6s”… free sample can be given by my supplier or something i purchase but under my marketing costs. this same product will also sell to my customer.
if i set the rate as $0.00, how does it work?
Make an item called iPhone6 Special Deal with a purchase cost is then $0 and continue as usual.
If you already entered an item called iPhone6 then go to item and duplicate it. Call the duplicate iPhone6 Special Deal.
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so it means i have 2 products with the same info, the difference is purchase cost and product name? is this the right business way?
Enter 0 as rmehta has suggested. I don’t get the bit about marketing. If you get a product, by whatever means, and sell it then it the costs associated with obtaining that product are a cost of sales and in this case that 0.
You can do what System19 suggests to keep it separate but the accounting does not require.
actually, i am getting free samples and giving to my customers for free (no costs).
i presume there will be no SKU for free sample right? or does SKU still apply?
should i keep track any quantity in stock for free samples too?
one more question
if i give free samples to my customer, do i need to attach a sales invoices (of $0) and a delivery order? normally what kind of documents should i attach (in proper business approach)?
That’s a very much more complicated question to answer and involves what the accounting rules for asset recognition in your country are. In the previous example where you got it free but sold it on then there was a clear economic benefit however when you receive it free and give it away to customer free then Accounting Standards and Tax Law in your own country would decide whether it should be in the accounts or not. Sorry to be so vague but it’s one of those areas where ambiguity can exist between the treatment in different countries. Personally my own view, without delving into UK Accounting rules is that it doesn’t need to be shown in the accounts at all. No costs in supply and not future economic benefits therefore it’s not an asset.
actually i will get it free from supplier and give to customer for free. However when I give to customer for free, there will be shipping costs to deliver the free sample to their house. That’s the only part there’s costs but that cost should be under my marketing costs (presume so).
what if my supplier gives me free sample + cash incentives to my customer, say free sample + $100 cash … how do i record the $100 when I give that $100 to my customer?
just curious, if i don’t use accounting module in erpnext will it do any justice? I may engage a 3rd party to handle my accounting. But I need to handles crm, sales, buying (via dropship) with erpnext. If I don’t use accounting, will it break the system?
Here’s a presentation on IFRS rules which I quickly found:
Slide 3 or 4 has the rules for recognition. On the face of it your scenario would mean that no asset exists therefore it should not be accounted for. The costs arising from postage don’t affect whether it is an asset therefore that can be ignored when deciding on the status of iphones. The costs should be treated as you have suggested ie marketing.
I don’t know enough about Accounting in ERPNext to answer that question other than there is no way to actually turn off accounting on ERPNext as sales information is accounting information as is purchases, etc therefore whilst there may be a module called accounting the reality is that by not choosing it you may lose features but accounting information is still recorded. The question is whether what doesn’t get recorded without the accounting module is required in order for your Accountant to be able to to produce accounts. That’s where I have no idea.
I think by far the best approach would be to decide what approach you plan to take and set up ERPNext with the Accounting company involved that way you can be sure that what you provide is sufficient to allow your accounts to drawn up and secondly it will actually save you money in long run as the Accountant will have much less work to do if the information provided is consistent and reliable.
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yeah thanks for replying…
but how should i handle cash incentives to my customer? since my supplier wants to pay my customer $100 thru me? But it’s ackward to pay customer. As I thought paying should be a supplier and customer should be paying me (sales) right?