1 Topic by ichtus (edited by ichtus 04/18/2019 08:20:22 am)

  • From: Indonesia, Surabaya
  • Registered: 01/08/2012
  • Posts: 36

Topic: Cost Of Service in FA 2.4.6 only after Sales Invoice posting

One question, don't know if this is approriate to handle transaction, look for advice more better solution

We have direct cost for the goods sold is:
- delivery cost
- import tax
- custom and clearance
and for the service we do in eventually for subcontractor for labour for installation,

We want to have costing this for the same like COGS (Cost Of Goods Sold), so it perhaps likely Cost of Service.
if we added item with "Service", and change COGS Account to Advance Cost (new COA with type of Activa), so only shown in Balance Sheet.

Journal will posting (testing posting in FA):

Invoice Supplier :
Cost Advance (D)
Account Payable (K)

Payment to Supplier:
Account Payable (D)
Bank (K)

after invoicing to customer, we will create journal entry to move costing manually:
Cost of Service (kind like COGS for services) (D)
Cost Advance (K)

so the cost will move to Income Statement.

but this way, in our report stock will show correctly, but the problem is that we need manually tracking which item that we need move manualy monthly will depend on posting for invoice tp customer, after all goods and all related service delivered.

ichtus's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,090

Re: Cost Of Service in FA 2.4.6 only after Sales Invoice posting

Make a Kit item of your "product and service" sold to your customer.
Since you know all the costs - landed cost - book it all a the price of the product bought from the Supplier.
Do not directly book the Supplier Invoice to the COGS. Do it through the Supplier Account where you can allocate the payments too.

1. Supplier Advance Proforma Invoice.
2. Advance to Supplier: Dr Supplier, Cr Bank
3. Cr - Import, Delivery, Custom Duties, etc,, Cr - Supplier for Direct Goods Cost, Dr. Purchases Expenses for Goods+Costs
4. Take into stock: Cr Supplier, Dr Stocks
5. (Optional) Allocate Payment to Supplier: Dr Supplier, Cr Supplier
6. Make Kit Item of Unit Goods and variable units of Install Service Charges
7. Invoice Kit Item to Customer - Dr Customer, Cr Sales
8. Payment from Customer - Cr Customer, Dr Bank
9. (Optional) Allocate Payment from Customer - Dr Customer, Cr Customer

@joe: anything more standard?

apmuthu's Website

3 Reply by ichtus (edited by ichtus 04/18/2019 12:14:13 pm)

  • From: Indonesia, Surabaya
  • Registered: 01/08/2012
  • Posts: 36

Re: Cost Of Service in FA 2.4.6 only after Sales Invoice posting

main concern is when we submit cost and or purchasing service, it should not costed in COGS if invoice sales not yet posting.

using kit product item with service item and with cogs account changed will considering, but this will create more process for sales person or administration to calculate upfront all the cost related and put in the BOM cost for sales item.
each sales order contain many items that each also may have different delivery cost air and sea, import tax and custom duty cost we have fixed percentage for the country.

for the previous process, need to mention as we use dimension also, so we could use GL Inquiry and filter via dimension for COA Cost Advance, to manually tracking cost and moving to COA Cost of Service.

ichtus's Website