1 Reply by ctisystems

(26 replies, posted in Items and Inventory)

Hi All,
I would just like to express an opinion on "landed Cost".
According to most accounting standards, incoming Inventory should be valued at "landed cost"
itemized landed cost is the correct way to handle inventory from the “GAAP” perspective. Additionally, IRS Publication 538 states that "For merchandise purchased during the year, cost means the invoice price minus appropriate discounts plus transportation or other charges incurred in acquiring the goods. It can also include other costs that have to be capitalized under the uniform capitalization rules of section 263A of the Internal Revenue Code."

"Landed Cost" is the legally correct way to account for inventory and is also the best method for management purposes.
many commercial software packages now include some way to handle this issue.

for frontaccounting, when entering a supplier / service provider invoice, or making a payment by direct journal entry It should be possible to apportion it on a line by line basis between an expense account (for non "landed costs" invoice Items and a "cost of goods sold" Suspense account until the goods arrive.
On receipt of the goods received note, the balance of that suspense account is allocated according to the preferred method (weight, volume, quantity etc.) to each line of goods on the GRN.
Dimensions would also be a good way to keep track of all items related to a particular order for audit purposes.

Go to forum: Items and Inventory

2 Topic by ctisystems

(0 replies, posted in Accounts Payable)

I see no "Landed Cost" module in FA to process import orders.

One of the methods to work around this would require the possibility to be able to post the VAT tax paid to the revenue authority by the customs broker (on his client's  behalf) which is then re-billed to his client among several other direct COGS items on their invoice, on the VAT side with ZERO line item value.

A Typical Customs Broker Invoice Example where Goods have been prepaid directly to the supplier (Foreign currency prepayment) would look like this:

CUSTOMS BROKER LTD - INVOICE
Clearing of 1 Pallet Various imported Goods from Supplier XYZ.
1 Customs Duties                                12,345.00      VAT- Nil -      0.00
2 Storage                                                  100.00     VAT 15%    15.00
3 VAT PAID to customs                           2,000.00     VAT- NIl        0.00
4 Local Transport                                      650.00     VAT 15%     97.50
5 Customs broker fees                           1,200.00     VAT 15%   180.00

Total Payable                                        16,295.00    Total VAT     92.50
Line 3 is a problem.
When processing this invoice it would be necessary to input the VAT Paid to Customs amount LINE 3 (2,000.00) DIRECTLY in the invoice TAX column with no amount (but a description of reason of this tax) in the line item, so that it is accounted properly as input VAT and picked up by the VAT TAX report.

What is the best way to handle this in FA ?

Thanks / Regards

Go to forum: Accounts Payable

3 Reply by ctisystems

(7 replies, posted in Installation)

Thanks
This should also solve many legal implications in various countries

Go to forum: Installation

4 Reply by ctisystems

(7 replies, posted in Installation)

I am evaluating FrontAccounting and note the following issue.
When installing several companies, it is easy in FA to set date display format - however, time is shown as (php) SERVER TIME.
On multiple companies or when using shared servers (not necessarily located in user's time zone) it should be possible IN FA to set the time to display & RECORD TRANSACTIONS at the time zone of THE LOCATION OF THE COMPANY'S (accounts)OFFICE on a per company basis. In today's world a server is located anywhere anywhere in the world  and can host several companies in many different time zones.
Any plans for this ?
Thanks / Regards

Go to forum: Installation