Customer Delivery by Product

266 Feuille1 Page 1 2800 2801 3000 4000 4400 5000 7000 8000 Stock In Stock Out Stock Val. Payable Product cost 9 Operations 10 20 19.00 3000 9 9 2800 10 10 2801 10 10 Expense Account 7000 Income Account 8000 4000 9 9 Debtor Account Payable 4400 20 20 BankCash account 5000 20 20 2800 2801 3000 4000 4400 5000 7000 7095 8000 Stock Val. Payable COGS Product cost 9 Operations 10 20 19.00 3000 9 9 2800 9 10 10 2801 1 Cost of Goods Sold Account 7000 10 10 Price difference creditor Account 7095 Income Account 8000 4000 9 9 Debtor Account Payable 4400 20 20 BankCash account 5000 9 9 20 20 In double-entry accounting, Debit and Credit symbols are used instead of + and – operations. For each transaction, the total of Dr and Cr must be equal Dr Cr + - - + + - - + Capital - + OpenERP Transaction – default mode with: Stock account set on warehouse location Stock inputOuput contra-transaction accounts set on product Receivable CashBank Expense Income Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Supplier price Sale price 1. Purchase 1 product SalePurchase Tax No entry Stock Valuation Account 2. Receive 1 product Stock Input Account 3. Supplier invoice Stock Output Account 4. Pay supplier 5. Sell 1 product No entry Creditor Account Receivable 6. Deliver 1 product 7. Customer Invoice 8. Customer pays OpenERP Transaction – anglo-saxon mode with: Highlighting of changes Stock account set on warehouse location Stock interim accounts set on product Cost of Goods Sold set as expense account on product Price difference account set on product Interim rec. Interim del. Receivable CashBank Price diff. Income Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Supplier price Sale price 1. Purchase 1 product SalePurchase Tax No entry Stock Valuation Account 2. Receive 1 product Stock Interim account Received 3. Supplier invoice Stock Interim account Delivered Price difference 4. Pay supplier 5. Sell 1 product No entry Creditor Account Receivable 6. Deliver 1 product 7. Customer Invoice Cost of Sale 8. Customer pays Generic Principles Debit Dr transaction = increase in assets or expenses Credit Cr transaction = increase in liabilities or gain Opposite transactions also used to decrease the values, e.g. a debit transaction will decrease liabilities or gain Reminder table Asset Liability Expense Income Gain Figure 20.17: Setting up Stock Valuation Accounts

20.4.5 Linked locations

Locations in OpenERP can be linked between each other to define paths followed by products. So you can define rules such as: all products that enter the warehouse must automatically be sent to quality control. The warehouse and quality control are represented by two different locations. Then when a product arrives in a location, OpenERP can automatically suggest that you send the product to another linked location. Three link modes are available: • Manual Operation, • Automatic Move, • Automatic No Step Added. The Manual Operation mode will create an internal move order to the linked location once products arrive in the source locations. This order will wait for a confirmation of the move by a user. This enables you to have a list of moves to do, proposed by the system and confirmed by the storesperson. Tip: Product Logistics The module stock_location lets you generate paths to follow, not just at the level of locations but also at the level of products. It then enables you to manage default locations for a given product or to refer to the products as a function of operations such as quality control, supplier receipt, and after-sales service. A more detailed explanation of this module, with examples, is given at the end of this chapter. The Automatic Move mode will do the same but will not wait for a confirmation from the user. Products will automatically be sent to the linked location without any intervening manual operation to do. This corresponds to the case where, for simplicity, you delete a step in the process so the end user can set off the process automatically. The Automatic No Step Added mode will not include the additional stock move but will change the destination move transparently to assign the linked the location. You could then assign a destination location to which you send all the products that arrive in your warehouse. The storesperson will modify the goods receipt note. If there is linking to do, the field Chained Location Type lets the destination location be determined. If the field is set to ‘Customer’, the location is given by the properties of the partner form. If the field is set to fixed , the destination location is given by the field Chained Location If Fixed. 267 Some operations take a certain time between order and execution. To account for this lead time, you can set a value in days in the field Chaining Lead Time. Then the extra move automatic or not will be carried out several days after the original move. If you use the mode Automatic No Step Added, the lead time is inserted directly into the initial order. In this way you can add security lead times at certain control points in the warehouse.

20.4.6 Structuring locations

You will see in the next part that linking locations allows you you manage a whole series of complex cases in managing production efficiently: • handling multiple operations for a customer order, • tracking import and export by sea transport, • managing a production chain in detail, • managing rented products, • managing consigned products. To show these concepts, five cases of structuring and configuring these locations are given below. Many other configurations are possible depending on needs.

20.4.7 Handling Customer Orders

Customer orders are usually handled in one of two ways: • item note or preparation order, confirmed when the item is ready to send, • delivery order or freight note, confirmed when the transporter has delivered the item to a customer. You use the following stock move in OpenERP to simulate these operations: • Packing Note: Stock Output, • Delivery Order: Output Customer. The first operation is automatically generated by the customer order. The second is generated by the stock management, showing that the Output location is linked to the Customer location. The two operations will show as waiting. If the Output location is not situated beneath the stock location you then have to move the item from stock to the place where the item is prepared. Some companies do not want to work in two steps, because it just seems like extra work to have to confirm a delivery note in the system. You can then set the link mode to ‘Automatic’ to make OpenERP automatically confirm the second step. It is then assumed all the items have automatically been delivered to the customer.

20.4.8 Linked Production

The stock_location module enables you to manage the linkages by product in addition to doing that by location. You can then create a location structure that represents your production chain by product. The location structure may look like this: • Stock – Level 1 – Level 2 Link 1 · Operation 1 · Operation 2 · Operation 3