Real Product Price

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‎Hello everyone,

I am seeking your expert inputs on a function that we need in ERPNext. 

Every business owner is interested in knowing the REAL product price - take e.g. a frozen product or a product which requires expense  to keep it in stock. With all regular accounting, expenses are maintained for a business and generally u understand your income and expense. 

Take an example of a frozen products. I purchase an item at 10 but that product is not sold for 6 months and every month I incur 2 as monthly maintenance cost. 

If I am selling this item after 6 months, my product cost has increased from 10 to 22 (12 for the maintenance) . I m looking at a way to understand this price (you can call it managerial accounting)‎. 

I was thinking of mapping expense to the product by a cost centre, but it becomes cumbersome for multiple products and multiple batches per product and the dynamic nature of the inventory. 

Another way I am thinking of is giving a user input form per inventory batch and enter per month expense (not linked to accounting) and then sum up all the costs till the sell date to arrive at the REAL price. This approach is workable, but involves duplication of data entry. 

Is there a way, from accounting screen itself where I create, may be, a new journal type - product expense journal, and when I am entering a credit entry, I also attach a Product batch dimension to it. This way, 1 entry gives me real accounting and managerial accounting. Do you think this can be worked?

Appreciate your inputs if you have better suggestions. 

We plan to publish this feature, if we could develop, to the community. I am sure, many others can benefit from this.

Thanks in advance. 

Sarang

Sent from my mobile device.



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@rushabh_mehta

On 18-Sep-2014, at 12:43 pm, sa...@gmail.com wrote:

‎Hello everyone,

I am seeking your expert inputs on a function that we need in ERPNext. 

Every business owner is interested in knowing the REAL product price - take e.g. a frozen product or a product which requires expense  to keep it in stock. With all regular accounting, expenses are maintained for a business and generally u understand your income and expense. 

Take an example of a frozen products. I purchase an item at 10 but that product is not sold for 6 months and every month I incur 2 as monthly maintenance cost. 

If I am selling this item after 6 months, my product cost has increased from 10 to 22 (12 for the maintenance) . I m looking at a way to understand this price (you can call it managerial accounting)‎. 

I was thinking of mapping expense to the product by a cost centre, but it becomes cumbersome for multiple products and multiple batches per product and the dynamic nature of the inventory. 

Another way I am thinking of is giving a user input form per inventory batch and enter per month expense (not linked to accounting) and then sum up all the costs till the sell date to arrive at the REAL price. This approach is workable, but involves duplication of data entry. 

Is there a way, from accounting screen itself where I create, may be, a new journal type - product expense journal, and when I am entering a credit entry, I also attach a Product batch dimension to it. This way, 1 entry gives me real accounting and managerial accounting. Do you think this can be worked?

Maybe we can extend the Stock Entry to allow change in value as well as change in quantity. It think we have discussed this internally a couple for times.

There are a bunch of issues open relating to valuation: https://github.com/frappe/erpnext/issues?q=is%3Aopen+is%3Aissue+valuation

Let me combine them and make a new issue relating to stock valuation - then we can hopefully include in v5.0




Appreciate your inputs if you have better suggestions. 

We plan to publish this feature, if we could develop, to the community. I am sure, many others can benefit from this.

Thanks in advance. 

Sarang

Sent from my mobile device.

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You received this message because you are subscribed to the Google Groups “ERPNext User’s Forum” group.

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For more options, visit https://groups.google.com/d/optout.