The description of the Anglo-Saxon module on http://v6apps.openerp.com/ is the following:
The difference between the Anglo-Saxon accounting countries and the Rhine (or also called Continental accounting) countries is the moment of taking the Cost of Goods Sold versus Cost of Sales. Anglo-Saxons accounting does take the cost when sales invoice is created, Continental accounting will take the cost at the moment the goods are shipped.
This module will add this functionality by using a interim account, to store the value of shipped goods and will contra book this interim account when the invoice is created to transfer this amount to the debtor or creditor account. Secondly, price differences between actual purchase price and fixed product standard price are booked on a separate account.
I am in doubt about making use of the Anglo-Saxon module for my small Dutch company. I have seen discussions on the old forum which looks like you always need this module when you work with accounting and warehousing. If I look at the description I think it only complicates for small companies.
Is there something missing in the description?
Our procedures are as follows:
- If we ship goods we have always our invoice at the same day.
- In some cases we send an invoice for (a part) of the payment in advance.
- In such a situation we book these invoices on special account advance payments.
- When we later ship the goods we send an invoice for the sales minus the already invoiced advanced payment.
- We book the deal on sold goods and book the advanced payment credit on the account advanced payment.
I think our procedures above are ok. I think we complicate things for us when we make use of the Anglo-Saxon module.
But I am not totally sure about it. So I ask: 1. Is there something missing in the description of the Anglo-Saxon module? 2. Are our procedures ok?
The following is based on the discussion with my Dutch accountant. Thank you Fred Blauer for the advice!
The main point is: For Dutch tax authorothies there must be a connection between sales and cost of sold goods for each accounting period.
The in my question described procedures are only a part of the solution for this. The other things are:
- Check when the goods are formal handed over to the client. If you sell them "ex works" this makes live easier. If you use an other Incotrans condition you need to solve the time gap in the administration. I always sell "ex-works", this makes life easier.
- At this moment I have my warehouse administration in a spreadsheet. Every time goods from the warehouse are sold I update this administration with the sold goods and the invoicenumber which is involved. In my accounting application I make a booking in miscellanious journal for the update cost of goods sold and the value of goods in the warehouse.
- At this moment I ship a part of my sales direct from my supplier to my client. For these sales invoices I make a connection to the invoice of the supplier via the the reference field "productionnumber" on my sales invoice. An alternative is to use the supplier location as a virtual warehouse like OpenERP has good possibilities for.
As you see we haven't automated this at this moment with OpenERP. For Dutch tax authorothies the above procedures are allowed and sufficient for a small company. It is possible and allowed to stay with these procedures when I make use if OpenERP for this.
My account told me the Anglo_Saxon modules looks it is a smart implementation to solve the demand of the tax authorities in a more automated and generic way. It all depends on the sales volume and work to be done for these procedures versus the complexity and transparancy of the Anglo-Saxon module.
I will start testing with both the standard and Anglo_Saxon module to become more familiar with all the ins and outs. It looks like when the company grows implementing Anglo-Saxon is the best thing todo.
The anglo saxon accounting module has to do with the accounting practices in your country. It has to do with the timing of when inventory and revenue is recognized in real-time accounting. It doesn't have to do with the size of your company. It shouldn't add any additional complexity. If you don't know how inventory is accounted for in your country you should ask an accountant who is familiar with Dutch accounting practices. I know that we need it here in North America, irrespective of the size of the company if we use real time accounting. Otherwise the inventory will not be correctly accounted for. I believe it is a localization issue. When we chose the Canadian chart of accounts, it gets installed automatically. I don't see why other countries don't do the same. I am sure a lot of companies are not using it when they should (since they are not accountants). It is good that you are asking.
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|Asked: 3/16/13, 10:27 AM|
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|Last updated: 11/18/15, 3:06 AM|