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the projects is tracked via Cost Center in ERPNext. This will require you creating separate Cost Center for each Project. Separate Cost Center for each Project all allow:< - -- Allocating budget against specific Cost Center. -- Getting Profitability Report for each Project. - -Let's check steps on how Project and Cost Center should be linked, and used in the sales and purchase transactions. - -### 1. Linking Project and Cost Center - -#### 1.1 Create Project - -You should first create new Project from: - -`Projects > Project > New` - -In the Project, you will find field to set default Cost Center for this Project. - -#### 1.2 Create Cost Center - -Since budgeting and costing for each Project will be managed separately, you should create separate Cost Center for each Project. - -To create new Cost Center, go to: - -`Accounts > Setup > Cost Center` - -[Click here to learn on how to add new Cost Center](https://erpnext.com/user-guide/accounts/cost-centers-and-budgeting). - -#### 1.3 Update Cost Center in the Project - -After creating Cost Center, come back to Project master, and select Cost Center creating for this Project under Default Cost Center field. - -![Project Default Cost Center]({{docs_base_url}}/assets/img/articles/Screen Shot 2015-02-26 at 3.52.10 pm.png) - -With this, you will have Cost Center being fetched automatically in the Sales and Purchase transactions based on selection of Cost Center. - -Let's check how this setting will affect your sales and purchase entries. - -### 2. Selecting Project and Cost Center in the Sales and Purchase Transactions - -#### 2.1 Selecting Project in the Sales Transactions - -In the sales transactions (which are Sales Order, Delivery Note and Sales Invoice), Project will be selected in the More Info section. On selection of a Project, respective Cost Center will be updated for all the items in that transaction. - -![Cost Center in Sales]({{docs_base_url}}/assets/img/articles/Screen Shot 2015-02-26 at 3.58.45 pm.png) - -#### 2.2 Selecting Project in the Purchase Cycle Transactions - -In the purchase transactions, Project will be define for each item. This is because you can create a consolidated purchase entry of materials for various projects. Just like it works in sales cycle, same way in the purchase transactions, on selection of Project, its default cost center will be fetched automatically. - -![Cost Center in Purchase]({{docs_base_url}}/assets/img/articles/Screen Shot 2015-02-26 at 4.20.30 pm.png) - -### 3. Accounting Report for a Project - -#### 3.1 Projectwise Profitability - -Since Project's Cost Center has been updated in both sales and purchase entries made for a specific transaction, system will provide you a projectwise profitability report. Profitability for a Project will be derived based on total value income booked minus total value of expense booked where common Cost Center (of a Project) is tagged. - -![Financial Analytics for a Project]({{docs_base_url}}/assets/img/articles/Screen Shot 2015-02-26 at 4.10.37 pm.png) - -#### 3.2 Projectwise Budgeting - -If you have also define budgets in the Cost Center of a Project, you will get Budget Variance Report for a Cost Center of a Project. - -To check Budget Variance report, go to: - -`Accounts > Standard Reports > Budget Variance Report` - -[Click here for detailed help on how to do budgeting from Cost Center](https://erpnext.com/user-guide/accounts/budgeting). - - diff --git a/erpnext/docs/user/manual/en/accounts/articles/changing-parent-account.md b/erpnext/docs/user/manual/en/accounts/articles/changing-parent-account.md index 1cff8542000..ccb89da45f7 100644 --- a/erpnext/docs/user/manual/en/accounts/articles/changing-parent-account.md +++ b/erpnext/docs/user/manual/en/accounts/articles/changing-parent-account.md @@ -1,8 +1,10 @@ #Changing Parent Account -Chart of Account has hierarchical structure. This means each account has a parent account defined for it. You will have few ledger preset, and few ledger (like for Customer, Supplier, Warehouse) will be auto-created based on their master record. These ledger will be placed under pre-defined groups in the Chart of Account. If needed you can place specific account under another group by changing its Parent Account. +Chart of Account has hierarchical structure. Each account has a parent it is listed under. -Following are the steps to edit Parent for specific Account. +There are some accounts which are auto-created. For example, Account for Warehouse is auto-created when new Wareouse is added in the system. These accounts are added under pre-defined account ledger. Warehouse Account is always added under Stock Assets, under Current Assets. + +If you wish to place specific Account into another parent Account, you can achieve the same as below. ####1. Go to Chart of Account @@ -12,17 +14,22 @@ Click on Account for which Parent Account is to be changed. ####2. Edit Account -![Account]({{docs_base_url}}/assets/img/articles/Selection_080.png) +Project Default Cost Center ####3. Change Parent Account Search and select preferred Parent Account and save. -![Account]({{docs_base_url}}/assets/img/articles/Selection_084.png) +Project Default Cost Center Refresh system from Help menu to experience the change. -![Account]({{docs_base_url}}/assets/img/articles/Selection_085.png) +Project Default Cost Center + +
Note: Parent cannot be customized for the Root Accounts, like Asset, Liability, Income, Expense, Equity.
+ +#### Quick Help + +Project Default Cost Center -
Note: Change of Parent Account is not applicable for Root Accounts.
\ No newline at end of file diff --git a/erpnext/docs/user/manual/en/accounts/articles/customer-for-multiple-company.md b/erpnext/docs/user/manual/en/accounts/articles/customer-for-multiple-company.md deleted file mode 100644 index 079b4b35576..00000000000 --- a/erpnext/docs/user/manual/en/accounts/articles/customer-for-multiple-company.md +++ /dev/null @@ -1,27 +0,0 @@ -#Customer for Multiple Company - -ERPNext allows you managing multiple companies in one ERPNext account. It is possible that you will have Customer and Supplier which would belong to more than one company of yours. While creating sales and purchase transactions, system shows result of Customer and Suppliers for that Company only. - -It means if you have added (say) Wind Mills Limited as a customer for the first company, you will not be able to select it as a customer when creating Sales Order (or any other sales transaction) for another company. - -There are two approach to address this scenario. - -####Create Another Customer Record - -You should create another Customer record for Wind Mills Limited, but for the second company. - -If you try adding another customer with exact same name (as Wind Mills Limited), system will throw a validation message that, account already exist for Wind Mills Limited. - -![Common Customer]({{docs_base_url}}/assets/img/articles/$SGrab_306.png) - ->To be able to track customerwise receivables, ERPNext created accounting ledger for each customer in the Chart of Account, under Accounts Receivable group. - -As indicated in the error message, since Account Name already exist for the first customer, you should change customer name for second customer a bit (say Wind Mills Pvt. Limited) to bring uniqueness in it. Then you will be able to save Customer correctly. - -####Change Company in Existing Customer - -Since creating another Customer record for the same party will be over-load in the system, you can change company in the exist Customer master of Wind Mills Limited, and re-save it. On saving customer again, it will create another accounting ledger for Wind Mills in the Chart of Account of second company. - -![Common Customer Account]({{docs_base_url}}/assets/img/articles/$SGrab_307.png) - - \ No newline at end of file diff --git a/erpnext/docs/user/manual/en/accounts/articles/depreciation-for-fixed-asset-items.md b/erpnext/docs/user/manual/en/accounts/articles/depreciation-for-fixed-asset-items.md index 4ce7f341da5..5eae30dbabe 100644 --- a/erpnext/docs/user/manual/en/accounts/articles/depreciation-for-fixed-asset-items.md +++ b/erpnext/docs/user/manual/en/accounts/articles/depreciation-for-fixed-asset-items.md @@ -1,30 +1,41 @@ #Depreciation for Fixed Asset Items -Depereciation of fixed asset items. +Depreciation is when you write off certain value of your assets as an expense. For example, office computer will be used for five years. Hence total value of computer should be booked as expense over the period of five years. -####Separate Group of Depreciation Account +As per perpetual inventory valuation system (set by default), you should create Stock Reconciliation for depreciating value of fixed asset items. Check below steps to learn more. -![Fixed Asset Account]({{docs_base_url}}/assets/img/articles/$SGrab_384.png) +#### Step 1: Depreciation Account -####Depreciation Entry for Fixed Asset Items +Depreciation account is auto-created, under Indirect Expenses account. -Depreciation is when you write off certain value of your assets as an expense. For example if you have a computer that you will use for say 5 years, you can distribute its expense over the period and pass a -Journal Voucher at the end of each year reducing its value by a certain percentage. +Project Default Cost Center -As per perpetual inventory valuation system (set by default), you should create Stock Reconciliation for depreciating value of fixed asset items. In the Stock Reconciliation template, you should only enter Item's Code, Warehouse and its current value. +#### Step 2: Stock Reconciliation -Let's assume current value of our computer is $250, and its purchase value was $320. +To create new Stock Reconciliation, go to: -![Fixed Asset Depreciation]({{docs_base_url}}/assets/img/articles/$SGrab_385.png) +`Stock > Setup > Stock Reconciliation > New` -In this case, depreciation amount of Computer will be $70 ($320-$250). Depreciation Amount will be booked under Difference (expense) Account selected in the stock reconciliation. +Set Posting Date and Time of Stock Reconciliation will when you wish depreciation entry to be posted in your accounts. -![Fixed Asset Depreciation]({{docs_base_url}}/assets/img/articles/$SGrab_386.png) +#### Step 3: Item -Following is how general ledger will be posted for fixed this Stock Reconciliation. +Select Fixed Asset Items in the item table. Update Warehouse of an item. For item valuation, update post-depreciation value. For example, item value was 100. Depreciation amount is 20. As per this post-depreciation valuation of an item will be 80. Hence 80 should be posted as valuation in the Stock Reconciliation. -![Fixed Asset General Ledger]({{docs_base_url}}/assets/img/articles/$SGrab_387.png) +Project Default Cost Center -Click [here](https://erpnext.com/user-guide/setting-up/stock-reconciliation-for-non-serialized-item) for steps to be followed when making Stock Reconciliation entry. +#### Step 4: Depreciation Account + +Select Depereciation Account in which depereciation amount will be booked. + +Project Default Cost Center + +#### Step 5: Submit + +On submission of Stock Reconciliation, depreciation will booked for items asset items. + +Project Default Cost Center + +Click [here]({{docs_base_url}}/user/manual/en/setting-up/stock-reconciliation-for-non-serialized-item) for steps to be followed when making Stock Reconciliation entry. \ No newline at end of file diff --git a/erpnext/docs/user/manual/en/accounts/articles/difference-entry-button.md b/erpnext/docs/user/manual/en/accounts/articles/difference-entry-button.md index 4e651dcc196..acac407fa36 100644 --- a/erpnext/docs/user/manual/en/accounts/articles/difference-entry-button.md +++ b/erpnext/docs/user/manual/en/accounts/articles/difference-entry-button.md @@ -1,16 +1,15 @@ -#Difference Entry Button +#Difference Entry -As per accounting standards Debit amount must be equal to Credit amount. If these amounts are not equal, then entry will not be executed in system. Also system will through validation message. And difference amount will reflect under Difference (Dr-Cr) field. -
-
-When you press 'Make Difference Entry' button, one new Row will be added under Journal Entry Accounts table with difference amount. You can edit that row to select appropriate account. -
- -
-
On selecting account under new row, you will be able to submit Journal Entry. -
-
-
If debit and credit amount entered for accounts are already tallying, then you need not click on "Make Difference Entry" button.
+As per accounting standards, debit in a accounting entry must be equal to credit. If not, system does allow submission of accounting transaction, thereby stops ledger posting. In ERPNext, on saving accounting entry, system validates if debit and credit is tallying. +Debit Credit Not Equal + +To have entry balanced, you should one more row, select another account, and update different amount in it. Or you can add difference amount in one of the Account's row itself. + +On clicking 'Make Difference Entry' button, new Row will be added under Journal Entry Accounts table, with difference amount. You can edit that row to select appropriate Account. + +Debit Credit Not Equal + +On selecting account under new row, debit and credit an entry will be tallying, and you should be able to submit Journal Entri correctly. \ No newline at end of file diff --git a/erpnext/docs/user/manual/en/accounts/articles/fiscal-year-error.md b/erpnext/docs/user/manual/en/accounts/articles/fiscal-year-error.md index 1dfcf00b246..8da261e35ca 100644 --- a/erpnext/docs/user/manual/en/accounts/articles/fiscal-year-error.md +++ b/erpnext/docs/user/manual/en/accounts/articles/fiscal-year-error.md @@ -1,32 +1,32 @@ # Fixing Fiscal Year Error -While creating entries in ERPNext, system validates if dates (like Posting Date, Transaction Date etc.) matches with Fiscal Year selected in the entry. If not, system through an error message saying: +While creating any entry, system validates if dates (like Posting Date, Transaction Date etc.) belongs to Fiscal Year selected. If not, system through an error message saying: `Date ##-##-#### not in fiscal year` -You are more likely to receive this error message if your Fiscal Year has changes, but you still have old Fiscal Year updated. To ensure new Fiscal Year is auto updated in the transactions, you should setup your master as instructed below. +You are more likely to receive this error message if your Fiscal Year has changes, but new Fiscal Year still not set a default. To ensure new Fiscal Year is auto updated in the transactions, you should setup your master as instructed below. -####Create New Fiscal Year +#### Create New Fiscal Year Only User with System Manager's Role Assigned has permission to create new Fiscal Year. To create new Fiscal Year, go to: `Accounts > Setup > Fiscal Year` -Click [here](https://erpnext.com/user-guide/accounts/fiscal-year) to learn more about Fiscal Year master. +Click [here]({{docs_base_url}}/user/manual/en/accounts/setup/fiscal-year) to learn more about Fiscal Year. -####Set Fiscal Year as Default +#### Set Fiscal Year as Default After Fiscal Year is saved, you will find option to set that Fiscal year as Default. -![Fiscal Year Default]({{docs_base_url}}/assets/img/articles/$SGrab_393.png) +Debit Credit Not Equal Default Fiscal Year will be updated in the Global Default setting as well. You can manually update Default Fiscal Year from: `Setup > Settings > Global Default` -![Fiscal Year Global Default]({{docs_base_url}}/assets/img/articles/$SGrab_394.png) +Debit Credit Not Equal -Then Save Global Default, and refresh browser of your ERPNext account. After this, you will have default Fiscal Year auto-updated in your transactions as well. +Save Global Default, and Reload your ERPNext account. Then, default Fiscal Year will be auto-updated in your transactions. -Note: In transactions, you can manually select required Fiscal Year from More Info section. You might have to click on "View Details" button to access View Details section, and edit Fiscal Year. +Note: In transactions, you can manually select required Fiscal Year, from More Info section. \ No newline at end of file diff --git a/erpnext/docs/user/manual/en/accounts/articles/index.txt b/erpnext/docs/user/manual/en/accounts/articles/index.txt index d345c2dd72a..05819278b6f 100644 --- a/erpnext/docs/user/manual/en/accounts/articles/index.txt +++ b/erpnext/docs/user/manual/en/accounts/articles/index.txt @@ -1,7 +1,6 @@ -accounting-for-projects +tracking-project-profitability-using-cost-center c-form changing-parent-account -customer-for-multiple-company depreciation-for-fixed-asset-items difference-entry-button fiscal-year-error diff --git a/erpnext/docs/user/manual/en/accounts/articles/tracking-project-profitability-using-cost-center.md b/erpnext/docs/user/manual/en/accounts/articles/tracking-project-profitability-using-cost-center.md new file mode 100644 index 00000000000..1129585cc50 --- /dev/null +++ b/erpnext/docs/user/manual/en/accounts/articles/tracking-project-profitability-using-cost-center.md @@ -0,0 +1,80 @@ +#Tracking Project Profibitability using Cost Center + +To track expenses and profibility for a project, you can use Cost Centers. You should create separate Cost Center for each Project. This will allow you to. + +- Allocating budget on expense for Projects. +- Tracking Profitability of Project. + +Let's check steps on how Project and Cost Center should be linked, and used in the sales and purchase transactions. + +### 1. Linking Project and Cost Center + +#### 1.1 Create Project + +To create new Project, go to: + +`Projects > Project > New` + +Project Default Cost Center + +#### 1.2 Create Cost Center + +Since budgeting and costing for each Project will be managed separately, you should create separate Cost Center for each Project. + +To create new Cost Center, go to: + +`Accounts > Setup > Cost Center` + +[Click here to learn how to manage Cost Centers.]({{docs_base_url}}/user/manual/en/accounts/setup/cost-center) + +#### 1.3 Update Cost Center in the Project + +Update Cost Center in the Project master. + +Project Default Cost Center + +In the sales and purchase transactions, if Project is selected, then Cost Center will fetched from the Project master. + +Let's check how this setting will affect your sales and purchase entries. + +### 2. Project and Cost Center in Sales & Purchase Transactions + +#### 2.1 Project in the Sales Transactions + +In the sales transactions (which are Sales Order, Delivery Note and Sales Invoice), Project will be selected in the More Info section. On selection of a Project, respective Cost Center will be updated for all the items in that transaction. Cost Center will be updated on in the transactions which has Cost Center field. + +Project Default Cost Center + +#### 2.2 Project in the Purchase Transactions + +In the purchase transactions, Project is define for each line item. This is because you can create a consolidated purchase entry for various projects. On selection of Project, its default cost center will auto-fetch. + +As per perpetual inventory valuation system, expense for the purchased item will be booked when raw-materials are consumed. On consumption of goods, if you are creating Material Issue (stock) entry, then Expense Cost (says Cost of Goods Sold) and Project's Cost Center should be updated in that entry. + +Project Default Cost Center + +### 3. Accounting Report for a Project + +#### 3.1 Projectwise Profitability + +Since Project's Cost Center is updated in both sales and purchase entries, you can check Project Profitability based on report on Cost Center. + +**Monthly Project Analysis** + +Project Default Cost Center + +**Overall Profitability** + +Project Default Cost Center + +#### 3.2 Projectwise Budgeting + +If you have also define budgets in the Cost Center of a Project, you will get Budget Variance Report for a Cost Center of a Project. + +To check Budget Variance report, go to: + +`Accounts > Standard Reports > Budget Variance Report` + +[Click here to learn how to do budgeting from Cost Center]({{docs_base_url}}/user/manual/en/accounts/budgeting). + + \ No newline at end of file