Recording expense of consumables

[Khurram Shahzad]

Dear All,

Using Tryton, We have entered the purchase of some 'consumable' products and finally products are available in warehouse.

Now, we want to issue these consumables to different departments and we want to record the expense right at the time of issuance.

For, this I thought, Internal Shipment module could work. However, this module only moves consumable item from warehouse to departments' store and does not post any financial transaction.

Am I using the right module? If not, which module should be used? Or, we will have to manually post this expense transaction.

--

 

Regards,

Khurram.

[Cédric Krier]

On 2017-03-14 10:07, Khurram Shahzad wrote:
> Dear All,
>
> Using Tryton, We have entered the purchase of some 'consumable' products
> and finally products are available in warehouse.
>
> Now, we want to issue these consumables to different departments and we
> want to record the expense right at the time of issuance.

What do you mean by "issue"? What kind of consumable is it?
Is not it indeed assets? For which purpose is it used?

> For, this I thought, Internal Shipment module could work. However, this
> module only moves consumable item from warehouse to departments' store and
> does not post any financial transaction.

There is no reason to make financial transaction when moving a product
inside your warehouse. The owner of the product stays the company.

--
Cédric Krier - B2CK SPRL
Email/Jabber: cedric...@b2ck.com
Tel: +32 472 54 46 59
Website: http://www.b2ck.com/

[Khurram Shahzad]

On Tue, Mar 14, 2017 at 1:34 PM, Cédric Krier <cedric...@b2ck.com> wrote:

On 2017-03-14 10:07, Khurram Shahzad wrote:
> Dear All,
>
> Using Tryton, We have entered the purchase of some 'consumable' products
> and finally products are available in warehouse.
>
> Now, we want to issue these consumables to different departments and we
> want to record the expense right at the time of issuance.

What do you mean by "issue"? What kind of consumable is it?
Is not it indeed assets? For which purpose is it used?

These consumables are stationary items, pages for printing, printer cartridges etc. A department requests for such items and store keeper issues them.

> For, this I thought, Internal Shipment module could work. However, this
> module only moves consumable item from warehouse to departments' store and
> does not post any financial transaction.

There is no reason to make financial transaction when moving a product
inside your warehouse. The owner of the product stays the company.

Since these are consumable items, so we need to update the inventory and record the expense when such items are given/issued to a department.

 

Regards,

Khurram.

[Cédric Krier]

On 2017-03-14 14:26, Khurram Shahzad wrote:
> > On 2017-03-14 10:07, Khurram Shahzad wrote:
> > > Dear All,
> > >
> > > Using Tryton, We have entered the purchase of some 'consumable' products
> > > and finally products are available in warehouse.
> > >
> > > Now, we want to issue these consumables to different departments and we
> > > want to record the expense right at the time of issuance.
> >
> > What do you mean by "issue"? What kind of consumable is it?
> > Is not it indeed assets? For which purpose is it used?
> >
>
> These consumables are stationary items, pages for printing, printer
> cartridges etc. A department requests for such items and store keeper
> issues them.

So indeed they are not goods but assets as you do not sale them.

> > > For, this I thought, Internal Shipment module could work. However, this
> > > module only moves consumable item from warehouse to departments' store
> > and
> > > does not post any financial transaction.
> >
> > There is no reason to make financial transaction when moving a product
> > inside your warehouse. The owner of the product stays the company.
> >
>
> Since these are consumable items, so we need to update the inventory and
> record the expense when such items are given/issued to a department.

But do you really need to track at stock level such product?
Maybe you can see them as service.

Now back on "department" stuff. What are you calling "department"?
Are you talking about analytic? What kind of financial transactions are
you expecting?

[Axel Braun]

> Gesendet: Dienstag, 14. März 2017 um 11:16 Uhr
> Von: "Cédric Krier" <cedric...@b2ck.com>
> An: try...@googlegroups.com
> Betreff: Re: [tryton] Recording expense of consumables

>
> On 2017-03-14 14:26, Khurram Shahzad wrote:
> > > On 2017-03-14 10:07, Khurram Shahzad wrote:
> > > > Dear All,
> > > >
> > > > Using Tryton, We have entered the purchase of some 'consumable' products
> > > > and finally products are available in warehouse.
> > > >
> > > > Now, we want to issue these consumables to different departments and we
> > > > want to record the expense right at the time of issuance.
> > >
> > > What do you mean by "issue"? What kind of consumable is it?
> > > Is not it indeed assets? For which purpose is it used?
> > >
> >
> > These consumables are stationary items, pages for printing, printer
> > cartridges etc. A department requests for such items and store keeper
> > issues them.
>
> So indeed they are not goods but assets as you do not sale them.

I can imagine he wants to issue a stock item into consumption - so not a move between storage locations or warehouses, but basically a withdrawal. This should result in a financial posting of the value of the item into (for example) the cost center of the department.

> > > > For, this I thought, Internal Shipment module could work. However, this
> > > > module only moves consumable item from warehouse to departments' store
> > > and
> > > > does not post any financial transaction.
> > >
> > > There is no reason to make financial transaction when moving a product
> > > inside your warehouse. The owner of the product stays the company.
> > >
> >
> > Since these are consumable items, so we need to update the inventory and
> > record the expense when such items are given/issued to a department.
>
> But do you really need to track at stock level such product?
> Maybe you can see them as service.

I think it makes sense to have office supplies as stock items - reorder point MRP helps to not run ouf stock (not sure if Tryton does support this...)

[Khurram Shahzad]

On Tue, Mar 14, 2017 at 3:16 PM, Cédric Krier <cedric...@b2ck.com> wrote:

On 2017-03-14 14:26, Khurram Shahzad wrote:
> > On 2017-03-14 10:07, Khurram Shahzad wrote:
> > > Dear All,
> > >
> > > Using Tryton, We have entered the purchase of some 'consumable' products
> > > and finally products are available in warehouse.
> > >
> > > Now, we want to issue these consumables to different departments and we
> > > want to record the expense right at the time of issuance.
> >
> > What do you mean by "issue"? What kind of consumable is it?
> > Is not it indeed assets? For which purpose is it used?
> >
>
> These consumables are stationary items, pages for printing, printer
> cartridges etc. A department requests for such items and store keeper
> issues them.

So indeed they are not goods but assets as you do not sale them.

They are not assets as we are not going to depreciate them rather we want to book their cost as expense as soon as they are handed over to the consumers.
 

> > > For, this I thought, Internal Shipment module could work. However, this
> > > module only moves consumable item from warehouse to departments' store
> > and
> > > does not post any financial transaction.
> >
> > There is no reason to make financial transaction when moving a product
> > inside your warehouse. The owner of the product stays the company.
> >
>
> Since these are consumable items, so we need to update the inventory and
> record the expense when such items are given/issued to a department.

But do you really need to track at stock level such product?
Maybe you can see them as service.

Yes, we do need to have stock level of consumables. In a hospital, consumable vary from X-ray films to linen items and they must be recorded as in-direct cost of sales.

 

Now back on "department" stuff. What are you calling "department"?
Are you talking about analytic? What kind of financial transactions are
you expecting?

For example 'Radiology' and 'Nursing' are my departments. I issue 'X-ray Films', 'Printer Cartridges' and 'Printing Papers' to Radiology department. In hospital's income statement, I want to have an expense account 'indirect cost of sales' which should be debited whenever Radiology departments gets such items from store.

--

 

Regards,

Khurram.

[Khurram Shahzad]

On Tue, Mar 14, 2017 at 3:44 PM, Axel Braun <Axel....@gmx.de> wrote:

> Gesendet: Dienstag, 14. März 2017 um 11:16 Uhr
> Von: "Cédric Krier" <cedric...@b2ck.com>
> An: try...@googlegroups.com
> Betreff: Re: [tryton] Recording expense of consumables
>
> On 2017-03-14 14:26, Khurram Shahzad wrote:
> > > On 2017-03-14 10:07, Khurram Shahzad wrote:
> > > > Dear All,
> > > >
> > > > Using Tryton, We have entered the purchase of some 'consumable' products
> > > > and finally products are available in warehouse.
> > > >
> > > > Now, we want to issue these consumables to different departments and we
> > > > want to record the expense right at the time of issuance.
> > >
> > > What do you mean by "issue"? What kind of consumable is it?
> > > Is not it indeed assets? For which purpose is it used?
> > >
> >
> > These consumables are stationary items, pages for printing, printer
> > cartridges etc. A department requests for such items and store keeper
> > issues them.
>
> So indeed they are not goods but assets as you do not sale them.

I can imagine he wants to issue a stock item into consumption - so not a move between storage locations or warehouses, but basically a withdrawal. This should result in a financial posting of the value of the item into (for example) the cost center of the department.

You are absolutely right! We need a complete system using which a department 'Requests' for such consumables and store manager 'Issues' these consumables and its financial impact is recorded as the expense. We are planning to have department's virtual entry with this expense move.

 

> > > > For, this I thought, Internal Shipment module could work. However, this
> > > > module only moves consumable item from warehouse to departments' store
> > > and
> > > > does not post any financial transaction.
> > >
> > > There is no reason to make financial transaction when moving a product
> > > inside your warehouse. The owner of the product stays the company.
> > >
> >
> > Since these are consumable items, so we need to update the inventory and
> > record the expense when such items are given/issued to a department.
>
> But do you really need to track at stock level such product?
> Maybe you can see them as service.

I think it makes sense to have office supplies as stock items - reorder point MRP helps to not run ouf stock (not sure if Tryton does support this...)

Yes. This is exactly our store managers want. They want to track the quantity so that minimum quantity in hand can be ensured.
 

> Now back on "department" stuff. What are you calling "department"?
> Are you talking about analytic? What kind of financial transactions are
> you expecting?

 

Regards,

Khurram.

[Cédric Krier]

On 2017-03-14 18:49, Khurram Shahzad wrote:
> On Tue, Mar 14, 2017 at 3:16 PM, Cédric Krier <cedric...@b2ck.com> wrote:
> > But do you really need to track at stock level such product?
> > Maybe you can see them as service.
> >
>
> Yes, we do need to have stock level of consumables.

Then it is not consumable but simple goods because consumable means we
do not care about the stock level.

> In a hospital,
> consumable vary from X-ray films to linen items and they must be recorded
> as in-direct cost of sales.
>
>
> >
> > Now back on "department" stuff. What are you calling "department"?
> > Are you talking about analytic? What kind of financial transactions are
> > you expecting?
> >
> >
> For example 'Radiology' and 'Nursing' are my departments. I issue 'X-ray
> Films', 'Printer Cartridges' and 'Printing Papers' to Radiology department.
> In hospital's income statement, I want to have an expense account 'indirect
> cost of sales' which should be debited whenever Radiology departments gets
> such items from store.

But the expense is already recorded when you purchased the goods, except
if you are doing anglo-saxon accounting. In that case, it seems we are
missing a kind of internal invoice (or internal shipment) to register
move the supplier cost to cogs.

[Khurram Shahzad]

Yes, we are using anglo-saxon accounting. You are absolutely right! How should I manage financial entry? I tried to accomplish this task using stock move but that does not make sense, I think!

 

Regards,

Khurram.

[Cédric Krier]

I guess we will need to have a new type of location for the product
consumed. And the anlgo-saxon module should create a cogs move when
internal shipment moves product to this location.

[Sergi Almacellas Abellana]

I think we can use moves with lost_found to_location in order to create this moves.

IIRC lost_found is a valid to location for internal moves, isn't it?

--
Enviado desde mi dispositivo Android con K-9 Mail. Por favor, disculpa mi brevedad.

[Cédric Krier]

On 2017-03-14 20:15, Sergi Almacellas Abellana wrote:
> >>
> >> Yes, we are using anglo-saxon accounting. You are absolutely right!
> >How
> >> should I manage financial entry? I tried to accomplish this task
> >using
> >> stock move but that does not make sense, I think!
> >
> >I guess we will need to have a new type of location for the product
> >consumed. And the anlgo-saxon module should create a cogs move when
> >internal shipment moves product to this location.
>
> I think we can use moves with lost_found to_location in order to create this moves.
>
> IIRC lost_found is a valid to location for internal moves, isn't it?

But lost_found is not usage. So such move should not create cogs move.

[Joa3]

Some goods bought on cash and paid for. How do I record these in Tryton

[Sergi Almacellas Abellana]

El 18/09/17 a les 14:47, Joa3 ha escrit:

> On Tuesday, March 14, 2017 at 11:05:07 AM UTC+3, Khurram Shahzad wrote:
>> Dear All,
>>
>> Using Tryton, We have entered the purchase of some 'consumable' products and finally products are available in warehouse.
>>
>> Now, we want to issue these consumables to different departments and we want to record the expense right at the time of issuance.
>>
>> For, this I thought, Internal Shipment module could work. However, this module only moves consumable item from warehouse to departments' store and does not post any financial transaction.
>>
>> Am I using the right module? If not, which module should be used? Or, we will have to manually post this expense transaction.

> Some goods bought on cash and paid for. How do I record these in Tryton

Once you have post the purchase invoice, you will see an button to
introduce it's payments.


--
Sergi Almacellas Abellana
www.koolpi.com
Twitter: @pokoli_srk