We are an intermediary agency specialized in the sale and assistance to the companies exporting directly (in Italy) frozen seafood products and frozen vegetable foods.
We are looking for an ERP suitable to replace the one (custom developed) we are using from decades which is a client/server system (not web based) and it is now showing its limitations. We have already excluded the chance to develop a new custom system.
The main question is if Odoo can manage customers and supplier in a way that is clearly different compared to traditional business.
Usually companies buy or produce goods or services to be sold to their customers following this scheme:
1 - Buying from suppliers
2 - Production
3 - Selling to customers
4 - Delivery
5 - Invoicing to customers
We do not produce or buy anything. What we do is catching business for the producers/sellers. We sell to some companies (buyers) the goods produced by some other companies (producers/sellers). The seller pay to us a commission for our selling service (plus other related services).
The buyers are companies that we select and propose as customers to the producer/seller companies: the buyers are mainly customers of the producer/seller companies but we must consider them as our customers as well, as their are the target of our sales (for them we should do appointment managment, CRM, etc.)
So, in order to calculate our commissions we have to record all the transactions between the seller and the buyer.
To do this we need to manage:
- the companies producing/selling the products
- the companies buying the products
- the products sold by the producer/seller and their sales volumes (price list and specifications of the products)
The “short circuit” happens as we have a double customer side: we must invoice the seller of the products, not the buyer.
Is there a chance to use Odoo in this way? Does exist an Odoo module/application capable to add this functionality?
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Hey
Federico and
Andrej Yes, it is possible to use Odoo for your intermediary agency business model. Odoo can be customized to fit specific business needs and requirements, including managing the transactions and commissions for an intermediary agency.
In Odoo, you can create customers and suppliers in a way that clearly differentiates them. You can create supplier records for the companies that produce and sell the products, and customer records for the companies that buy the products. You can also create a separate customer record for your agency clients (the buyers), which will allow you to manage their appointments and interactions with your agency.
To manage the transactions and commissions, you can use the Odoo Sales and Purchase modules. You can create sales orders for the products sold by the producer/seller companies to the buyer companies, and purchase orders for the products bought by the producer/seller companies from their suppliers. You can also create invoices for the producer/seller companies to bill them for the commission fees.
To record the transactions between the seller and the buyer, you can use the Odoo Accounting module. You can create journal entries to record the commission fees paid by the seller companies to your agency. You can also use the Odoo Reporting module to generate reports and analyze the sales and commission data.
There are also Odoo modules and applications available in the Odoo App Store that can help with managing intermediary agency transactions, such as the Commission Management app, which can help automate the commission calculations and tracking.
Overall, with the flexibility and customization options available in Odoo, it is definitely possible to use Odoo to manage your intermediary agency business model.
I hope this helps! Let me know if you have any other questions.
Thank you for your reply. The difficulty I see is that we run two models at the same time, both as an agency and as a standard distributor. We are agents for machines and distributors for spare parts. In 30% of business cases we are an agency where we invoice our commission to the the producer/seller for his sales to the buyer XYZ, in 70% we are the seller to the same buyer XYZ, we invoice the buyer XYZ and purchase good from the producer/seller.
Hi Andrej, It sounds like you are facing a challenge in managing your business operations where you act both as an agency and a distributor. Specifically, you mentioned that in 30% of your business cases, you act as an agent and invoice your commission to the producer/seller for their sales to the buyer XYZ, and in 70% of cases, you act as a seller to the same buyer XYZ and purchase goods from the producer/seller.
One potential difficulty in this setup is managing the different invoicing and payment processes that come with each role. As an agency, you would need to ensure that you receive timely commission payments from the producer/seller based on the agreed-upon percentage or amount. As a distributor, you would need to invoice the buyer XYZ and ensure timely payments while also managing your own payments to the producer/seller for the goods purchased.
To address this challenge, you may want to consider implementing a clear and consistent invoicing and payment system for each role. This could involve using different templates or software tools for agency vs. distributor invoicing, as well as setting up clear payment terms and processes for each type of transaction. It may also be helpful to have a dedicated team or individual responsible for managing each role to ensure that nothing falls through the cracks.
Another consideration is ensuring that you have a clear understanding of your profitability in each role. This may require careful tracking and analysis of your costs and revenue for each type of transaction, as well as regular monitoring to identify any areas where you may need to adjust your pricing or processes to maintain profitability.
Overall, managing multiple roles within a business can be complex, but with careful planning and attention to detail, it is possible to successfully navigate these challenges and ensure continued growth and success for your business.
you are managing a complex business model that involves acting as both an agency and a standard distributor for different products.
One potential solution to managing this complexity could be to use an integrated business management software like Odoo. Odoo offers a range of features that can help streamline your business processes and improve efficiency, including:
Sales Management: Odoo can help you manage both your agency and distributor sales processes in a single system, allowing you to easily create quotes, sales orders, and invoices for each type of transaction.
Inventory Management: Odoo can help you keep track of your inventory for both machines and spare parts, allowing you to manage stock levels, track shipments, and generate purchase orders as needed.
Accounting and Finance: Odoo can help you manage your financial processes, including tracking commission payments from producers/sellers as well as invoicing and payment processing for your distributor sales.
Reporting and Analytics: Odoo can provide you with real-time insights into your business performance, including revenue and profitability analysis for each type of transaction.
By using a comprehensive business management software like Odoo, you can streamline your operations and reduce the potential for errors or miscommunication between your agency and distributor sales processes. This can help you to increase efficiency, reduce costs, and ultimately drive growth for your business.
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I've got exactly the same question, how to handle these transactions.