Greetings, First, I have to say: great work on LedgerSMB, and I think it is a wonderful system.
Now, I have these questions/comments regarding inventory management: 1. Does LedgerSMB allows to use moving average instead of FIFO while doing sales? see, according to what I have read, and the tests I did on the system, currently LedgerSMB uses FIFO, so, it have something like "lots" of parts, where the system assumes that I'll be expending the oldest lots first, and thus it will subtract from the Inventory account the cost of the oldest pieces first, additionally, I think the profit would be calculated by using the cost of the oldest lot too. In my country, because of legal requirements, you *have to* use the moving average cost on sales for profit calculation (otherwise profit would likely be higher for oldest parts). But the problem doesn't end here, please, read on. 2. Lets talk about initial inventory. Lets say that my company is not a new one, and that I'm moving from manual bookkeeping and inventory to LedgerSMB. In this case, I have to enter the initial amounts for each account, including inventory, but.... how to do the inventory part? according to the documentation, I would have to create a (fake?) invoice to prime the inventory: that'll generate a accounts payable entry, that I have to pay somehow, and... where would I pay that from? cash? bank account? capital? (please, tell me: I really have no idea) ie: I'm not actually buying the inventory again, I'm just adding what I already have (just like I did with other accounts: just add the initial value), so.... I think there is something wrong here, why? well.... I'm just an IT guy, not an accountant, but after I suggested the "fake invoice" method to prime the inventory, I got scolded quite badly by the two accountants, and they even said it could be considered illegal, and could violate the general accounting principles, and that all systems should include an inventory management module, where you could actually manage it (add / remove / ....), without the need to necessarily use an invoice to add parts (what if, for example, I'm mining the parts). 3. What about inventory lost? well, things happen... lets say you get your parts damaged (or materials damaged, while doing manufacturing), how do you report that on LedgerSMB? I mean, I would have to adjust the inventory accordingly, and record the loss on some account (doubly-entry). What do you think about all of this? Thanks! Ildefonso Camargo ------------------------------------------------------------------------------ Live Security Virtual Conference Exclusive live event will cover all the ways today's security and threat landscape has changed and how IT managers can respond. Discussions will include endpoint security, mobile security and the latest in malware threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ _______________________________________________ Ledger-smb-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
