Today I uploaded a new module I think will be of interest to some: Inventory Accounting. It is currently in review.
Inventory management is a challenge for many small and medium sized businesses. For Dolibarr users, the challenge is compounded because there is no straightforward means of accounting for inventory and tracking cost of goods sold. This is important because:
Income – Cost of Goods Sold = Gross Profit
Without Cost of Goods Sold, you are effectively flying blind as to a primary metric of success – product profitability.
Dolibarr relieves inventory in the products/services module when the sale is invoiced, but there is currently no mechanism for mapping inventory transactions into the accounting system (except for purchase receipts, which are processed as purchase journal entries).
The Inventory Accounting module addresses this problem by analyzing product movement activity of all types – which Dolibarr tracks very well in the Products/Services module. It then uses a snapshot of beginning inventory created by the Inventory Accounting system, stock movement history, and a standard accounting formula to calculate ending inventory values, as well as cost of goods sold, purchased price variance, production inputs and outputs, and inventory adjustments for the period. Then when validated, it creates a new snapshot for the next period and journal entries to bring all inventory related accounts up to date.
With improved inventory accounting, your accounting system can provide a clearer picture of inventory-related activity. As a result, you will have more insight into profitability and be positioned to make more informed decisions.
Want to know more? Email us at support@erpreimagined.com for a free white paper – and for the first ten requestors, a 10% discount coupon. You can also reply here if you have questions about it. Thanks.
hkwhitten
Gun Barrel City, Texas
