In adopting ERPNEXT for our business model, there are trade-off that has to be made, when is much, too much? Especially when it affects income statement our profitability report.
We are cat A distributor to few fmcg coy what this also means is various manufacturer takes our warehouse as mini distribution center to sub-distributors this is achieved with the help of thier various reps (over 5).
Each rep can make Sales Return / Swap of product not picked in our warehouse for same brand or a total different product so long it’s part of their company’s brands.
Now the elephant in the room is to translate this process in ERPNEXT, return of this case that occurs on a daily basis for us is not possible in ERPNEXT.
Our only solution is material issues and material receipt this comes with its own evil, a big hole in our income statement, everything will work a okay if for every $1 material issued there’s a $1 material receipted, this doesn’t work in real life scenarios, sometimes when reconciliation is done for the reps, they are made to pay physical cash or bank transfer to clear off weekly or as case demands.
How do we deal with the profit of $100-/+ resulting in this process? We are looking for a better implementation or suggestions, for anyone that has handle similar business model.
I’m no expert in stock accounting, but the use of material issue/receipts seems unusual to me. When stock items are given to reps, are they considered sold? Wouldn’t Sales documents (including credit notes for returns) be the appropriate transfer documents to use?
As first look it seems correct to use sales documents, most accounting software including the one we used allowed for this. What you haven’t put in consideration is product swap erpnext doesn’t allow this, while most accounting solutions allow for this as I have said before. Delivery note and Returns are only possible for same item on a SO or SI
Also if it happens to be same product/item brand how do you account for product return or swap for Sales Invoice of 3 - 6 months before Erpnext implementation that document could not possible be in Erpnext, therefore Credit Not and Returns won’t work this too,
We are looking for how people have handle same or similar scenario or we have to build a Custom App for that?
Thank you for your time,
Simply put will want to know; How you will go about product return for sales transaction that occurs before Erpnext implementation say two to three weeks before?
It depends on where you are in the order/billing cycle, but you just do it normally. You can issue a return delivery note, for example, without an originating sales order.
Is it possible to get a custom app to handle return feature, but it doesn’t necessarily require a previous Sales Invoice or DN. It should return the inventory back to the choosen warehouse and a credit note to the customer with the stock value linked to it.
Almost certainly. There are really very few limits on what custom doctypes can do, including very low level access to stock and accounting ledgers. If you can articulate a process explicitly, you can probably make it a doctype.
That said…
Unfortunately, I’m still not really understanding why the existing functionality doesn’t serve your needs. This is exactly what a return Sales Invoice already does. No originating document is required.
Okay I think we have same understanding now, by using negative value for qty to return then, it defeat the checks for negative or greater than zero net amount check by Erpnext
Will give it a try, I’ll disable those pop up checks then. Thank you.
Generally speaking, It is a “best practice” to your legal entity stuff and “tracking stuff” separate. We have built a logistics control system for a company that is handling ~2Million orders a month and each order is an assembly (pick) of items that number between 10-30 diferent things…
We dont use ERPNext. We have built a custom logistics tracker (using Frappe frameowrk) that does just that job. Furthere from here, they can do the actual accounting in another ERP system.
You need to separate ERPNext related (what could be used out of the box) and other special business neads and build that out using Frappe Apps.