Actual Margins stored in Sales Orders

Discussions relating to version the "old" version 7 of Jiwa

Actual Margins stored in Sales Orders

Postby jiwameister » Fri Mar 19, 2010 2:36 pm

One thing that has been frustrating for sales managers over time is reporting on actual sales margins from the sales orders themselves.

I propose that in Jiwa V7 whenever a cost is changed to an item that was sold on a particular order (ie due to landed costing, creditors invoice completed after goods sold etc) that a new field that tracks the update to the cost be written after the fact. Ie - there could be a field that tracks the cost known at the time of the order, and another field that could be updated as costs are updated.

This would allow actual margin reporting to be accurate, and the differences between actual reported to GL (before COGS variance) and after the various variances would be more visible down to sales order and sales order line level.
Glenn Lake
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Re: Actual Margins stored in Sales Orders

Postby Danny C » Fri Mar 19, 2010 4:14 pm

Seconded.

Motion passed.
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Re: Actual Margins stored in Sales Orders

Postby Mike.Sheen » Sat Mar 20, 2010 2:53 am

jiwameister wrote:One thing that has been frustrating for sales managers over time is reporting on actual sales margins from the sales orders themselves.

I propose that in Jiwa V7 whenever a cost is changed to an item that was sold on a particular order (ie due to landed costing, creditors invoice completed after goods sold etc) that a new field that tracks the update to the cost be written after the fact. Ie - there could be a field that tracks the cost known at the time of the order, and another field that could be updated as costs are updated.

This would allow actual margin reporting to be accurate, and the differences between actual reported to GL (before COGS variance) and after the various variances would be more visible down to sales order and sales order line level.


This is going to be a tough thing to achieve, particularly when leveraging negative stock being picked for an order (the true cost isn't known at that time, and may never be known).

Maybe if we implement the option to flag certain items as not being able to go into negative then this would be possible.

We'll look at this in more detail, so please feel free to "bump" this thread at some stage to "remind" us - but right now I'm thinking this is something we can look at post 7.0.
Mike Sheen
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Jiwa Financials

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Re: Actual Margins stored in Sales Orders

Postby jiwameister » Mon Apr 19, 2010 3:56 pm

Mike.Sheen wrote:This is going to be a tough thing to achieve, particularly when leveraging negative stock being picked for an order (the true cost isn't known at that time, and may never be known).

Maybe if we implement the option to flag certain items as not being able to go into negative then this would be possible.

We'll look at this in more detail, so please feel free to "bump" this thread at some stage to "remind" us - but right now I'm thinking this is something we can look at post 7.0.


Fair enough, although it may not be as difficult as you mention. What if the logic was simply to flag whether the cost of an item on a sales order line is not yet finalised. Once the cost is updated, either from landed costing, or from purchase invoicing, then it looks for all stock used from an incoming delivery and updates the flag. Negative stock would have to be updated on FIFO or other appropriate logic as to which stock was used once the stock arrives, or as you mentioned could be excluded from this process.
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