Purchase Administration - Account Moves

[Khurram Shahzad]

Dear All,

We have started implementing the Purchases module at our hospital.

I processed the first purchase in the system from Quote to Receive goods from Supplier. Then I posted the Supplier invoice and found following move lines generated:
1. Main Payable (supplier account): credit $500
2. Main Expense: credit $500
3. Medicine Stock: debit $500
4. Main Expense: debit $500

I am unable to understand why is Main Expense (which is set as Account Expense for the product purchased) is first credited and then debited by the same amount of $500? I think the lines 1 and 3 should be sufficient.

Any thoughts?

Best Regards,
Khurram.

[Cédric Krier]

Please provide the list of modules activated and the accounting
configuration of the product purchased. Also are all lines part of the
same accounting move?
Tryton is extremely modular and the behaviour can not be explained
without having a complete description of the configuration.

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

[Armand Mpassy-Nzoumba]

Hi Khurram

On 2017-01-12 06:32, Khurram Shahzad wrote:
> Dear All,
>
> We have started implementing the Purchases module at our hospital.
>
> I processed the first purchase in the system from Quote to Receive goods
> from Supplier. Then I posted the Supplier invoice and found following move
> lines generated:
> 1. Main Payable (supplier account): credit $500
> 2. Main Expense: credit $500
> 3. Medicine Stock: debit $500
> 4. Main Expense: debit $500
>
> I am unable to understand why is Main Expense (which is set as Account
> Expense for the product purchased) is first credited and then debited by
> the same amount of $500? I think the lines 1 and 3 should be sufficient.
>
> Any thoughts?

It makes sens from an accounting point of view:

1/You first make a purchase:

Main Payable is credited: $500

Expenses is debited: $500

2/You then transfer the goods in your warehouse:

Medicine Stock debited: $500 (it increases)

Main Expenses credited: $500 (you remove it as expenses so that it won't impact on your revenue statement)

At the end you have the only 2 transactions that do matter:

Main Payable is credited: $500

Medicine Stock debited: $500 (it increases)

Kind regards,

Armand

[Khurram Shahzad]

Dear Cedric,

On Thu, Jan 12, 2017 at 7:59 PM, Cédric Krier <cedric...@b2ck.com> wrote:

On 2017-01-12 06:32, Khurram Shahzad wrote:
> Dear All,
>
> We have started implementing the Purchases module at our hospital.
>
> I processed the first purchase in the system from Quote to Receive goods
> from Supplier. Then I posted the Supplier invoice and found following move
> lines generated:
> 1. Main Payable (supplier account): credit $500
> 2. Main Expense: credit $500
> 3. Medicine Stock: debit $500
> 4. Main Expense: debit $500
>
> I am unable to understand why is Main Expense (which is set as Account
> Expense for the product purchased) is first credited and then debited by
> the same amount of $500? I think the lines 1 and 3 should be sufficient.
>
> Any thoughts?

Please provide the list of modules activated and the accounting
configuration of the product purchased.

Following are the modules activated:

account
account_asset
account_deposit
account_invoice
account_invoice_stock
account_payment
account_product
account_statement
account_stock_anglo_saxon
account_stock_continental
analytic_account
analytic_invoice
company
country
currency
dashboard
health.*
ir
party
product
product_price_list
purchase
res
sale
sale_invoice_grouping
sale_payment
sale_pos
sale_price_list
sale_shop
sale_w_tax
stock
stock_lot
stock_supply
webdav
 

Also are all lines part of the
same accounting move?

Yes, all lines are part of one accounting move. This move is recorded in Expense journal. The origin of this move is 'invoice' with 'sup-invoice'. Moreover, in this supplier invoice, there is only one invoice line which also points to a stock move.

Thanks,

Khurram.

[Khurram Shahzad]

Dear Cedric,

I forgot to mention that I have selected 'Anglo-Saxon' as Account Stock Method in Account Stock configuration of the Fiscal Year.

Regards,

Khurram.

[Khurram Shahzad]

Hi Armand,

Thank you for the response!

But, our finance department is worried about the auditing at the end of fiscal year as they will have to justify these debit and credit  with the same amount.

--

 

Regards,

Khurram.

[Mark Hayden]

Hi Khurram,

What is the specific concern? Though passing the amount through expense account first is not at all required I cannot see the auditing concern since it does not obscure or mislead.

It seems to be a mechanism included to handle cases where a business to track purchases of goods where invoices, payment etc are made before goods are received, which is a common situation. Certainly auditors would see that as a GOOD thing to be able to easily see the value of goods purchased but not received.

All these moves being in one transaction indicates something like invoice/payment on receipt of goods. If a lot of purchases were invoiced well prior to delivery it would be invoiced on order instead. And the accountant might want specific expense type accounts to track such purchasing. Tryton is really general and has infinite configuration possibilities for infinite situations like lots of ERP platforms lol.

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[Khurram Shahzad]

Dear Hayden,

Thanks for such a comprehensive response! But, there seems to be no connection between "Receiving of goods" and inclusion of this expense account lines in the move. As, I first received the goods and then prepared and posted the invoice.

Thanks for highlighting this dimension but I wanted to confirm whether this is an expected behavior or a bug or an entry caused due to installation of unnecessary modules.

Bests,

Khurram.

To view this discussion on the web visit https://groups.google.com/d/msgid/tryton/CAJ0%2BmOq9tXT_L2UzU%2BAcf8i7Ld9Mh0454ryxFwY-83o-VjfoUA%40mail.gmail.com.

--

 

Regards,

Khurram.

[Cédric Krier]

On 2017-01-14 11:46, Khurram Shahzad wrote:
> Dear Hayden,
>
> Thanks for such a comprehensive response! But, there seems to be no
> connection between "Receiving of goods" and inclusion of this expense
> account lines in the move. As, I first received the goods and then prepared
> and posted the invoice.
>
> Thanks for highlighting this dimension but I wanted to confirm whether this
> is an expected behavior or a bug or an entry caused due to installation of
> unnecessary modules.

The behaviour is described in the documentation:
http://doc.tryton.org/4.2/modules/account_stock_anglo_saxon/doc/index.html

As Hayden said this is designed this way to be modular and also manage
any differences between the cost and the invoiced amount.
You have just a particular case where both are exactly the same.

It was already envisaged to have a kind of reduce method for such case
but it was abandoned because it was too complex to make such feature
modular and extensible. So we prefer to create extra lines.


PS: Please do not top-post on this mailing-list, see
https://groups.tryton.org/netiquette

[Khurram Shahzad]

Dear Cedric,

On Sat, Jan 14, 2017 at 4:42 PM, Cédric Krier <cedric...@b2ck.com> wrote:

On 2017-01-14 11:46, Khurram Shahzad wrote:
> Dear Hayden,
>
> Thanks for such a comprehensive response! But, there seems to be no
> connection between "Receiving of goods" and inclusion of this expense
> account lines in the move. As, I first received the goods and then prepared
> and posted the invoice.
>
> Thanks for highlighting this dimension but I wanted to confirm whether this
> is an expected behavior or a bug or an entry caused due to installation of
> unnecessary modules.

The behaviour is described in the documentation:
http://doc.tryton.org/4.2/modules/account_stock_anglo_saxon/doc/index.html

As Hayden said this is designed this way to be modular and also manage
any differences between the cost and the invoiced amount.
You have just a particular case where both are exactly the same.

It was already envisaged to have a kind of reduce method for such case
but it was abandoned because it was too complex to make such feature
modular and extensible. So we prefer to create extra lines.

 

Thank you very much!

Regards,

Khurram.

[Dr. Habib Hussain]

Dear Khurram Shahzad,
AOA,
I am a family physician and now a days struggling with tryton erp with health modules activated. What I want to accomplish is a POS for my clinic's pharmacy and its inventory management.

A POS solution based on Tryton seems satisfactory to me.

The ones I came across are;

presik-pos from presik technologies

one from ZikZakMedia

GCOS not actively developed.

I tried installing presik_pos......during pip install module, already installed prerequisite modules and trytond downgraded from 4.6 (current) to 4.2.. and some required modules dont have version 4.2 available, so I am stuck..

I need your help in this regard. Please .

I want to know the working configuration of your installed system.
And have you gone with presik_pos or generic one provided by tryton community ??

Can we talk on the phone? or email labeeb8 at g mai l co m.
I hope to get very useful insight from you.
Thanking in anticipation..
Dr. Habib Hussain.

[Khurram Shahzad]

On Thu, Dec 7, 2017 at 1:19 AM, Dr. Habib Hussain <lab...@gmail.com> wrote:

Dear Khurram Shahzad,
AOA,
I am a family physician and now a days struggling with tryton erp with health modules activated. What I want to accomplish is a POS for my clinic's pharmacy and its inventory management.

A POS solution based on Tryton seems satisfactory to me.

The ones I came across are;

presik-pos from presik technologies

one from ZikZakMedia

GCOS not actively developed.

I tried installing presik_pos......during pip install module, already installed prerequisite modules and trytond downgraded from 4.6 (current) to 4.2.. and some required modules dont have version 4.2 available, so I am stuck..

I need your help in this regard. Please .

I want to know the working configuration of your installed system.
And have you gone with presik_pos or generic one provided by tryton community ??

We are using ZikZakMedia Pos and its working pretty fine though we have customized it as per our requirements.

Can we talk on the phone? or email labeeb8 at g mai l co m.

Yes! You are more than welcome!