• From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Topic: replacing 'cost of goods sold method'

Hi!

First of all: Congratulation for more than 100,000 downloads!!
I think, this demonstrates quality of FA and the work, that you guys have done. A big thank you!

Well, our current problem: we'll use the 'nature of extense method' instead of the 'cost of goods sold method'.
So, I wonder, if we could get it working simply by smart configuration of the accounts (cogs, inventory, inventory adjustment) or if we have to crawl and struggle through the code to disable gl-bookings.
And, if so, are there special function-calls we have to look for or do we need to inspect every program, which is involved: purchase: grn, invoice, credit notes, more? sales: invoice, credit note, more? inventory: inventory adjustments, more? manufacturing: ?, etc.

barney

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: replacing 'cost of goods sold method'

Thanks four warm words.

I am not sure if I understand you correctly.

Do you want to disable the GL accounts booking?

You can setup the accounts in a way that suits you better. Talk to an accountant about that.

Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: replacing 'cost of goods sold method'

Yes, we want to disable GL accounts booking (inventory-related bookings).
We do have an accountant (consultant), but unfortunately he can't help, as he knows not much about 'cost of goods sold method'. He is a professional for 'nature of extense method', where GL accounts booking are disabled, as I mentioned before. What we need is: purchase invoices must do a gl-booking on purchasing-account, just like sales do bookings on sales-account.

Can't see at the moment how to configure.
Any help?

barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: replacing 'cost of goods sold method'

If you don't use the inventory system, you can declare all the items as service items. Then FA will use the normal purchpase account set on the supplier when entering the items on the supp invoice. It is possible to buy service items.

Will this help you?

Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: replacing 'cost of goods sold method'

I am not sure.
What abount quantity control with service items?
And: we would like to use manufacturing in the future...
Hm, I think, we'll have to change the programs...
Are there special items, which we could look for, or just special modules, where inventory-gl-booking is done?
Or do we really have to go through all programs?

barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: replacing 'cost of goods sold method'

You could also change the Inventory Account to be a fictive cost account instead of an Inventory Account in Branches, Suppliers and Items.

Then it will book the transactions on the fictive cost account instead of the Inventory Account. This fictive account will zero out during the transactions ( receival, supp invoice, delivery note and sales invoice).

Maybe your Accountant can accept that, or?

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: replacing 'cost of goods sold method'

Thanks, Joe.
I'll ask him.
And is it the same with cogs and inventory adjustment??

barney

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: replacing 'cost of goods sold method'

The inventory account will be replaced by the fictive account. You can laborate further together with your accountant.

Joe