Business Process Question - Best Way to Handle

[james-2]

CONTENTS DELETED

The author has deleted this message.

[Craig Parker]

I haven't gotten this far yet into OFBiz, but I'm already wondering the
same kind of thing. Is there something like an item class you can create
where things go on the invoice but there's no inventory? Things like
labor, service charges, core charges, etc. I've seen in the ERP I work
with now "generic" items, but they still get tracked inventory-wise;
they're more for those big buckets of miscellaneous tools you see in
auto stores near the front counter.


On 03/08/2017 07:28 AM, [hidden email] wrote:

> Good Morning.  I am looking for the best way in Ofbiz to handle a
> business process for one of my clients.
>
> They are a Consumer Electronics Parts Distributor and they sell
> replacement parts for items like plasma TVs, refrigerators, etc.  They
> have a concept of a "Core" charge.  A core charge is a price they charge
> if the core or bad part has not been returned
>
> When they sell the part they add this core charge as a line item but it
> is really not an inventory item when the replacement part.  If the core
> or bad part is returned then the core charge is removed from the
> invoice.  They have to track that the which order the core was returned
> from as well as which customer.
>
> The core now goes into inventory as a bad part but can not go back in
> with the original part number
>
> Now if the core is not returned the customer is responsible for the
> original core charge.
>
> Anyone have experience in this industry or based on the brief
> description above suggest the best way OFbiz can handle this process.
>
> Thanks in Advance!
>
> James

[james-2]

CONTENTS DELETED

The author has deleted this message.

[marcopaul]

Technically you are buying the core from the customer and selling them a new one.

Here’s an off-the-top-of-my-head way to try but I may have missed a step or two but will at least give you some ideas:

To make it fit OFBiz flow, kick off a purchase order to that customer for the core, which will put it into inventory and will work with the receive PO flows when they do send it back. Ideally you would have unique part number for each type of core involved to track that stuff properly.

Then you can track each core with inventory items which can hold the core serial numbers and statuses for their flow through refurbishment or scrapping or manufacturer’s credit and all that jazz. If you end up sending them to the manufacturer you just spit out a sales order for those specific inventory items and everything is tidy.

If you get fancy you can use the MRP process to put the cores through internal refurbishment processes and put it back into inventory to send it out again for future customers if the volume gets crazy and accountants get involved. :-)

If the purchase order gets filled (e.g. core received) take that payment and apply it to the sales invoice.  If it doesn’t, then apply the cash payment to the invoice and cancel the PO.

So you’ll always have a Core item on there and then either a payment from the PO from the returned core, or a payment from the customer in cash for the non-returned core and everything balances.

You could adjust the PO forms so they are a “core return order” or something like that for the customer to send the core to you.

Only complication there is you need to make sure the customers are identified as suppliers for those cores which could get a little complicated and might muddy data a bit. Might be easier to make a generic “Customer Core Return” supplier so it doesn’t get too messy. I think you can still route the payments without customizing anything.

—P

> On Mar 8, 2017, at 12:57 PM, <[hidden email]> <[hidden email]> wrote:
>
> Thanks Craig.  The main thing with the cores is you have to track that
> it is Outstanding with the customer and then when it comes back how do
> you account for it in inventory since it can be refurbished and then
> resold.
>
> Anyone else experience the business process of Cores and refurbishments?
>
> Thanks,
>
> James
>
> -------- Original Message --------
> Subject: Re: Business Process Question - Best Way to Handle
> From: Craig Parker <[hidden email]>
> Date: Wed, March 08, 2017 6:12 am
> To: [hidden email]
>
> I haven't gotten this far yet into OFBiz, but I'm already wondering the
> same kind of thing. Is there something like an item class you can create
>
> where things go on the invoice but there's no inventory? Things like
> labor, service charges, core charges, etc. I've seen in the ERP I work
> with now "generic" items, but they still get tracked inventory-wise;
> they're more for those big buckets of miscellaneous tools you see in
> auto stores near the front counter.
>
>
> On 03/08/2017 07:28 AM, [hidden email] wrote:
>> Good Morning. I am looking for the best way in Ofbiz to handle a
>> business process for one of my clients.
>>
>> They are a Consumer Electronics Parts Distributor and they sell
>> replacement parts for items like plasma TVs, refrigerators, etc. They
>> have a concept of a "Core" charge. A core charge is a price they charge
>> if the core or bad part has not been returned
>>
>> When they sell the part they add this core charge as a line item but it
>> is really not an inventory item when the replacement part. If the core
>> or bad part is returned then the core charge is removed from the
>> invoice. They have to track that the which order the core was returned
>> from as well as which customer.
>>
>> The core now goes into inventory as a bad part but can not go back in
>> with the original part number
>>
>> Now if the core is not returned the customer is responsible for the
>> original core charge.
>>
>> Anyone have experience in this industry or based on the brief
>> description above suggest the best way OFbiz can handle this process.
>>
>> Thanks in Advance!
>>
>> James

[Shi Jinghai-3]

Thanks Paul!

Great answer, very helpful to me.

Glad to see James are working on a similar project as what we'll do for Lenovo next month. It seems the customer service functions of manufacturers are clouding, hope our OFBiz community can catch up this chance.


-----邮件原件-----
发件人: Paul Mandeltort [mailto:[hidden email]]
发送时间: 2017年3月9日 3:35
收件人: [hidden email]
主题: Re: Business Process Question - Best Way to Handle

Technically you are buying the core from the customer and selling them a new one.

Here’s an off-the-top-of-my-head way to try but I may have missed a step or two but will at least give you some ideas:

To make it fit OFBiz flow, kick off a purchase order to that customer for the core, which will put it into inventory and will work with the receive PO flows when they do send it back. Ideally you would have unique part number for each type of core involved to track that stuff properly.

Then you can track each core with inventory items which can hold the core serial numbers and statuses for their flow through refurbishment or scrapping or manufacturer’s credit and all that jazz. If you end up sending them to the manufacturer you just spit out a sales order for those specific inventory items and everything is tidy.

If you get fancy you can use the MRP process to put the cores through internal refurbishment processes and put it back into inventory to send it out again for future customers if the volume gets crazy and accountants get involved. :-)

If the purchase order gets filled (e.g. core received) take that payment and apply it to the sales invoice.  If it doesn’t, then apply the cash payment to the invoice and cancel the PO.

So you’ll always have a Core item on there and then either a payment from the PO from the returned core, or a payment from the customer in cash for the non-returned core and everything balances.

You could adjust the PO forms so they are a “core return order” or something like that for the customer to send the core to you.

Only complication there is you need to make sure the customers are identified as suppliers for those cores which could get a little complicated and might muddy data a bit. Might be easier to make a generic “Customer Core Return” supplier so it doesn’t get too messy. I think you can still route the payments without customizing anything.

—P

> On Mar 8, 2017, at 12:57 PM, <[hidden email]> <[hidden email]> wrote:
>
> Thanks Craig.  The main thing with the cores is you have to track that
> it is Outstanding with the customer and then when it comes back how do
> you account for it in inventory since it can be refurbished and then
> resold.
>
> Anyone else experience the business process of Cores and refurbishments?
>
> Thanks,
>
> James
>
> -------- Original Message --------
> Subject: Re: Business Process Question - Best Way to Handle
> From: Craig Parker <[hidden email]>
> Date: Wed, March 08, 2017 6:12 am
> To: [hidden email]
>
> I haven't gotten this far yet into OFBiz, but I'm already wondering
> the same kind of thing. Is there something like an item class you can
> create
>
> where things go on the invoice but there's no inventory? Things like
> labor, service charges, core charges, etc. I've seen in the ERP I work
> with now "generic" items, but they still get tracked inventory-wise;
> they're more for those big buckets of miscellaneous tools you see in
> auto stores near the front counter.
>
>
> On 03/08/2017 07:28 AM, [hidden email] wrote:
>> Good Morning. I am looking for the best way in Ofbiz to handle a
>> business process for one of my clients.
>>
>> They are a Consumer Electronics Parts Distributor and they sell
>> replacement parts for items like plasma TVs, refrigerators, etc. They
>> have a concept of a "Core" charge. A core charge is a price they
>> charge if the core or bad part has not been returned
>>
>> When they sell the part they add this core charge as a line item but
>> it is really not an inventory item when the replacement part. If the
>> core or bad part is returned then the core charge is removed from the
>> invoice. They have to track that the which order the core was
>> returned from as well as which customer.
>>
>> The core now goes into inventory as a bad part but can not go back in
>> with the original part number
>>
>> Now if the core is not returned the customer is responsible for the
>> original core charge.
>>
>> Anyone have experience in this industry or based on the brief
>> description above suggest the best way OFbiz can handle this process.
>>
>> Thanks in Advance!
>>
>> James

[Pierre Smits]

James,

Based on your short description, it looks like you're talking about the
delivery and invoicing of non-serialized products, the return thereof and
the further processing (internal/external refurbishment or replacement by
supplier).

Delivery of the product is straight-forward, invoicing it (as a charge)
also. The return process (and associated credit-note) also Look at the
RMAs. On internal refurbishment the returned product goes through a
(virtual) refurbishment process (use manufacturing) to assign it a new
product-id and other attributes and have the new product registered in
inventory.

Best regards,

Pierre Smits

ORRTIZ.COM <http://www.orrtiz.com>
OFBiz based solutions & services

OFBiz Extensions Marketplace
http://oem.ofbizci.net/oci-2/

On Thu, Mar 9, 2017 at 2:02 AM, Shi Jinghai <[hidden email]> wrote:

> Thanks Paul!
>
> Great answer, very helpful to me.
>
> Glad to see James are working on a similar project as what we'll do for
> Lenovo next month. It seems the customer service functions of manufacturers
> are clouding, hope our OFBiz community can catch up this chance.
>
>
> -----邮件原件-----
> 发件人: Paul Mandeltort [mailto:[hidden email]]
> 发送时间: 2017年3月9日 3:35
> 收件人: [hidden email]
> 主题: Re: Business Process Question - Best Way to Handle
>
> Technically you are buying the core from the customer and selling them a
> new one.
>
> Here’s an off-the-top-of-my-head way to try but I may have missed a step
> or two but will at least give you some ideas:
>
> To make it fit OFBiz flow, kick off a purchase order to that customer for
> the core, which will put it into inventory and will work with the receive
> PO flows when they do send it back. Ideally you would have unique part
> number for each type of core involved to track that stuff properly.
>
> Then you can track each core with inventory items which can hold the core
> serial numbers and statuses for their flow through refurbishment or
> scrapping or manufacturer’s credit and all that jazz. If you end up sending
> them to the manufacturer you just spit out a sales order for those specific
> inventory items and everything is tidy.
>
> If you get fancy you can use the MRP process to put the cores through
> internal refurbishment processes and put it back into inventory to send it
> out again for future customers if the volume gets crazy and accountants get
> involved. :-)
>
> If the purchase order gets filled (e.g. core received) take that payment
> and apply it to the sales invoice.  If it doesn’t, then apply the cash
> payment to the invoice and cancel the PO.
>
> So you’ll always have a Core item on there and then either a payment from
> the PO from the returned core, or a payment from the customer in cash for
> the non-returned core and everything balances.
>
> You could adjust the PO forms so they are a “core return order” or
> something like that for the customer to send the core to you.
>
> Only complication there is you need to make sure the customers are
> identified as suppliers for those cores which could get a little
> complicated and might muddy data a bit. Might be easier to make a generic
> “Customer Core Return” supplier so it doesn’t get too messy. I think you
> can still route the payments without customizing anything.
>
> —P
>
>
> > On Mar 8, 2017, at 12:57 PM, <[hidden email]> <
> [hidden email]> wrote:
> >
> > Thanks Craig.  The main thing with the cores is you have to track that
> > it is Outstanding with the customer and then when it comes back how do
> > you account for it in inventory since it can be refurbished and then
> > resold.
> >
> > Anyone else experience the business process of Cores and refurbishments?
> >
> > Thanks,
> >
> > James
> >
> > -------- Original Message --------
> > Subject: Re: Business Process Question - Best Way to Handle
> > From: Craig Parker <[hidden email]>
> > Date: Wed, March 08, 2017 6:12 am
> > To: [hidden email]
> >
> > I haven't gotten this far yet into OFBiz, but I'm already wondering
> > the same kind of thing. Is there something like an item class you can
> > create
> >
> > where things go on the invoice but there's no inventory? Things like
> > labor, service charges, core charges, etc. I've seen in the ERP I work
> > with now "generic" items, but they still get tracked inventory-wise;
> > they're more for those big buckets of miscellaneous tools you see in
> > auto stores near the front counter.
> >
> >
> > On 03/08/2017 07:28 AM, [hidden email] wrote:
> >> Good Morning. I am looking for the best way in Ofbiz to handle a
> >> business process for one of my clients.
> >>
> >> They are a Consumer Electronics Parts Distributor and they sell
> >> replacement parts for items like plasma TVs, refrigerators, etc. They
> >> have a concept of a "Core" charge. A core charge is a price they
> >> charge if the core or bad part has not been returned
> >>
> >> When they sell the part they add this core charge as a line item but
> >> it is really not an inventory item when the replacement part. If the
> >> core or bad part is returned then the core charge is removed from the
> >> invoice. They have to track that the which order the core was
> >> returned from as well as which customer.
> >>
> >> The core now goes into inventory as a bad part but can not go back in
> >> with the original part number
> >>
> >> Now if the core is not returned the customer is responsible for the
> >> original core charge.
> >>
> >> Anyone have experience in this industry or based on the brief
> >> description above suggest the best way OFbiz can handle this process.
> >>
> >> Thanks in Advance!
> >>
> >> James
>
>

[james-2]

CONTENTS DELETED

The author has deleted this message.

[Pierre Smits]

Maybe I am wrong about this, but in the initial delivery (of the end
product) is the 'core' charge not equivalent to a service charge? With the
service being of the nature of taking back or replace a physical product
(the delivered product, or part thereof)?

Best regards,

Pierre Smits

ORRTIZ.COM <http://www.orrtiz.com>
OFBiz based solutions & services

OFBiz Extensions Marketplace
http://oem.ofbizci.net/oci-2/

On Thu, Mar 9, 2017 at 1:00 PM, <[hidden email]> wrote:

> The biggest issue with cores is that when it goes out it is actually a
> virtual product but when the used part comes back in it is a physical
> product that you must track to the order. Since they is a charge on the
> original invoice for the virtual product when the used product comes
> back the original invoice must be credited. If it does not get returned
> the customer is responsible for the charge. When it comes back the part
> either can be returned to the original vendor scrapped or refurbished.
> Does that make since?
>
>
> -------- Original Message --------
> Subject: Re: Business Process Question - Best Way to Handle
> From: Pierre Smits <[hidden email]>
> Date: Thu, March 09, 2017 12:38 am
> To: [hidden email]
>
> James,
>
> Based on your short description, it looks like you're talking about the
> delivery and invoicing of non-serialized products, the return thereof
> and
> the further processing (internal/external refurbishment or replacement
> by
> supplier).
>
> Delivery of the product is straight-forward, invoicing it (as a charge)
> also. The return process (and associated credit-note) also Look at the
> RMAs. On internal refurbishment the returned product goes through a
> (virtual) refurbishment process (use manufacturing) to assign it a new
> product-id and other attributes and have the new product registered in
> inventory.
>
> Best regards,
>
> Pierre Smits
>
> ORRTIZ.COM <http://www.orrtiz.com>
> OFBiz based solutions & services
>
> OFBiz Extensions Marketplace
> http://oem.ofbizci.net/oci-2/
>
> On Thu, Mar 9, 2017 at 2:02 AM, Shi Jinghai <[hidden email]>
> wrote:
>
> > Thanks Paul!
> >
> > Great answer, very helpful to me.
> >
> > Glad to see James are working on a similar project as what we'll do for
> > Lenovo next month. It seems the customer service functions of
> manufacturers
> > are clouding, hope our OFBiz community can catch up this chance.
> >
> >
> > -----邮件原件-----
> > 发件人: Paul Mandeltort [mailto:[hidden email]]
> > 发送时间: 2017年3月9日 3:35
> > 收件人: [hidden email]
> > 主题: Re: Business Process Question - Best Way to Handle
> >
> > Technically you are buying the core from the customer and selling them a
> > new one.
> >
> > Here’s an off-the-top-of-my-head way to try but I may have missed a step
> > or two but will at least give you some ideas:
> >
> > To make it fit OFBiz flow, kick off a purchase order to that customer for
> > the core, which will put it into inventory and will work with the receive
> > PO flows when they do send it back. Ideally you would have unique part
> > number for each type of core involved to track that stuff properly.
> >
> > Then you can track each core with inventory items which can hold the core
> > serial numbers and statuses for their flow through refurbishment or
> > scrapping or manufacturer’s credit and all that jazz. If you end up
> sending
> > them to the manufacturer you just spit out a sales order for those
> specific
> > inventory items and everything is tidy.
> >
> > If you get fancy you can use the MRP process to put the cores through
> > internal refurbishment processes and put it back into inventory to send
> it
> > out again for future customers if the volume gets crazy and accountants
> get
> > involved. :-)
> >
> > If the purchase order gets filled (e.g. core received) take that payment
> > and apply it to the sales invoice. If it doesn’t, then apply the cash
> > payment to the invoice and cancel the PO.
> >
> > So you’ll always have a Core item on there and then either a payment from
> > the PO from the returned core, or a payment from the customer in cash for
> > the non-returned core and everything balances.
> >
> > You could adjust the PO forms so they are a “core return order” or
> > something like that for the customer to send the core to you.
> >
> > Only complication there is you need to make sure the customers are
> > identified as suppliers for those cores which could get a little
> > complicated and might muddy data a bit. Might be easier to make a generic
> > “Customer Core Return” supplier so it doesn’t get too messy. I think you
> > can still route the payments without customizing anything.
> >
> > —P
> >
> >
> > > On Mar 8, 2017, at 12:57 PM, <[hidden email]> <
> > [hidden email]> wrote:
> > >
> > > Thanks Craig. The main thing with the cores is you have to track that
> > > it is Outstanding with the customer and then when it comes back how do
> > > you account for it in inventory since it can be refurbished and then
> > > resold.
> > >
> > > Anyone else experience the business process of Cores and
> refurbishments?
> > >
> > > Thanks,
> > >
> > > James
> > >
> > > -------- Original Message --------
> > > Subject: Re: Business Process Question - Best Way to Handle
> > > From: Craig Parker <[hidden email]>
> > > Date: Wed, March 08, 2017 6:12 am
> > > To: [hidden email]
> > >
> > > I haven't gotten this far yet into OFBiz, but I'm already wondering
> > > the same kind of thing. Is there something like an item class you can
> > > create
> > >
> > > where things go on the invoice but there's no inventory? Things like
> > > labor, service charges, core charges, etc. I've seen in the ERP I work
> > > with now "generic" items, but they still get tracked inventory-wise;
> > > they're more for those big buckets of miscellaneous tools you see in
> > > auto stores near the front counter.
> > >
> > >
> > > On 03/08/2017 07:28 AM, [hidden email] wrote:
> > >> Good Morning. I am looking for the best way in Ofbiz to handle a
> > >> business process for one of my clients.
> > >>
> > >> They are a Consumer Electronics Parts Distributor and they sell
> > >> replacement parts for items like plasma TVs, refrigerators, etc. They
> > >> have a concept of a "Core" charge. A core charge is a price they
> > >> charge if the core or bad part has not been returned
> > >>
> > >> When they sell the part they add this core charge as a line item but
> > >> it is really not an inventory item when the replacement part. If the
> > >> core or bad part is returned then the core charge is removed from the
> > >> invoice. They have to track that the which order the core was
> > >> returned from as well as which customer.
> > >>
> > >> The core now goes into inventory as a bad part but can not go back in
> > >> with the original part number
> > >>
> > >> Now if the core is not returned the customer is responsible for the
> > >> original core charge.
> > >>
> > >> Anyone have experience in this industry or based on the brief
> > >> description above suggest the best way OFbiz can handle this process.
> > >>
> > >> Thanks in Advance!
> > >>
> > >> James
> >
> >
>