Dear all,
I have been using ERPNext for over a year now, and i’m pretty satisfied (even grateful) that such an amazing system exists.
What I still do not understand up to this moment is:
1- What exactly are the factors that affect the valuation rate of an item? (in gross profit reports and stock reports)
sometimes the VAT 5% from the P.inv doesn’t add up at all to the valuation rate in the reports, and sometimes it does.
sometimes adding an amount of Expenses Included In Valuations adds up in the valuation rate when I check the stock ledger/balance, and sometimes it doesn’t.
adding Freight and Forwarding Charges charges to my P.inv never seems to add up at all in the items valuation rate in the reports.
what are the rules/factors? how can I know the exact Initial Cost of an Item I purchased which includes all the taxes/charges/reductions?
(only the 5%VAT added up to my valuation rate, even though the item costed me 25SR (including all the charges) not only 21… and that -in turn- messes up my gross profit report with extra (imaginary) profit.
Why are you considering the VAT as the cost. It will be recovered from the customer in the sales invoice. This VAT is your asset and when you recover it the balance you will give to govt.
For me, the valuation rate is filled during the stock entry and then all relevant reports are calculated perfectly.
that depends, here in KSA not all companies can charge VAT this year… so it is very possible that we need to consider the VAT as cost because 99% we do not charge it in the sales invoice and thus our pricing policy will make no sense.
ERPNext ALREADY counts VAT as the cost in my newly set erp accounts… so how does that add up?
VAT isn’t my only issue, how about Freight and Forwarding Charges? how about Expenses Included In Valuations?
already done sir, and the results were shocking I found the solution and I pretty much know everything now…
I could even say what I found could be considered a “bug”
And being the grateful good-hearted user that I am… I’ll tell you what it is about…
Then let us know what you discover
when you add your expenses (ie taxes/freight&forwarding/shipping) from a predefined templated… everything works like a charm… and the ‘gross’ cost that you see in the reports for each time- already includes all the mentioned expenses.
HOWEVER, when you manually add those lines in the P.inv. , nothing will add up and the ‘cost’ you see in the reports would only (unfortunately) be the exact purchasing price from the p.inv. (no matter how many lines you manually added in the ‘charges’ field…
20,000+1,000+500+400/1,000(qty) = 21.9SAR (gross unit cost)… and that number never showed in my reports… only the exactly item purchasing rate showed there (20SAR), which is very very problematic…
and here I only chose the predefined template, and it automatically added the rows for me (P.inv 00105)
I found the solution and I pretty much know everything now…
