svn commit: r1827195 - in /ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc: _include/acc-global-settings.adoc accounting.adoc

[Sharan Foga]

Author: sharan
Date: Mon Mar 19 13:06:22 2018
New Revision: 1827195

URL: http://svn.apache.org/viewvc?rev=1827195&view=rev
Log:
Improved: Added initial draft for accounting global settings documentation (OFBIZ-10297)

Added:
    ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/_include/acc-global-settings.adoc
Modified:
    ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/accounting.adoc

Added: ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/_include/acc-global-settings.adoc
URL: http://svn.apache.org/viewvc/ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/_include/acc-global-settings.adoc?rev=1827195&view=auto
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--- ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/_include/acc-global-settings.adoc (added)
+++ ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/_include/acc-global-settings.adoc Mon Mar 19 13:06:22 2018
@@ -0,0 +1,194 @@
+////
+Licensed to the Apache Software Foundation (ASF) under one
+or more contributor license agreements.  See the NOTICE file
+distributed with this work for additional information
+regarding copyright ownership.  The ASF licenses this file
+to you under the Apache License, Version 2.0 (the
+"License"); you may not use this file except in compliance
+with the License.  You may obtain a copy of the License at
+
+http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing,
+software distributed under the License is distributed on an
+"AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+KIND, either express or implied.  See the License for the
+specific language governing permissions and limitations
+under the License.
+////
+= Global General Ledger Settings
+
+The Global General Ledger Settings are master templates that we can use to setup
+up our chart of accounts, default transactions or other settings that can be applied
+across many OFBiz modules.
+
+We need settings at a global level because OFBiz is an integrated system so certain
+areas like accounting are linked to many other modules. It also makes sense to have
+a central place to setup things that will be used globally.
+
+At the time of writing, the following are available as part of the Global GL Settings:
+
+ * Chart of Accounts - a comprehensive master template for a complete chart of
+accounts.
+ * Custom Time Periods - a master list to display or setup financial periods
+ * Costs - a master list of any cost calculations to be used for assets or tasks
+ * Payment Method Type - a master list of the ways payments can be made (e.g. cash,
+credit card etc) and the default accounts to be used for each
+ * Invoice Item Type - a master list of all the transaction line types that can
+occur on any invoice and the default account to be used for each
+ * Rates - a list of rates (e.g. pay rates, overtime rates etc) that can be used
+for billing work,tasks or as part of salary calculations
+ * Foreign Exchange Rates - a master list of exchange rates to be used and dates
+they are valid
+ * GL Account Category - currently this is set to be a list of cost centres
+ * Cost Centers - a way to specify how to process percentage allocations between
+cost centres for specific accounts
+
+== Master Template - Chart of Accounts
+
+If you load the demo data, then by default over 450 accounts are included as part
+of the OFBiz global chart of accounts master template.
+
+To setup a chart of accounts in OFBiz simply means that we need to select the
+accounts we want to use from the global chart of accounts master template.
+
+All general ledger accounts must exist in the global template before they can be
+ assigned to be used at the organisation level (e.g. Company)
+
+== Custom Time Periods
+
+Time periods are a defined period of time (usually a month, quarter or year) that
+is used to group business transactions. It is a key part of any general accounting
+setup. Time periods can be used for the definition of :
+
+ * Company Financial Year
+ * Fiscal / Tax Periods (weeks, months, quarters)
+ * VAT / GST Periods
+ * Sales Periods
+
+== Costs
+
+A business is designed to be profi table. This means that you need to be able to
+track all the costs involved in your business to ensure that you are not losing
+money.
+
+Some example costs that you may want to setup and track are as follows:
+
+ * Raw Materials Costs
+ * Labour Costs
+ * Rental Costs
+ * Electricity Costs
+ * Quality Assurance or Regulatory Costs
+
+=== Direct and Indirect Costs
+
+Costs can also be broken down into “Direct” and “Indirect” costs.
+Direct costs are costs that are easily identifiable as directly related to what
+you do to produce and sell to your customers.
+
+Indirect costs are costs that cannot easily be directly linked to what you on sell
+ to your customers. Included in this would be rent, electricity or general
+administration costs.
+
+=== Fixed and variable Costs
+Variable costs are those that rise and fall based on the amount product you produce
+or sell. If you sell or produce a lot of products it will cost more than if you
+produce a smaller amount.
+
+Fixed costs are ones that remain the same no matter how much is being produced or
+sold.
+
+Before you can calculate costs you need to define a formula of how to do it and
+in OFBiz this is called a “Cost Component Calculation”.
+
+== Payment Method Type
+
+A “Payment Method” is simply a way to define the ways in which payments can be made.
+Examples include:
+
+ * Cash
+ * Cheque
+ * Electronic Funds Transfer
+ * Billing Account
+ * Paypal
+ * Financial Account
+ * Gift Certificate
+
+Each payment method can be linked to a different General Ledger account in the
+Chart of Accounts. By doing this OFBiz will be able to help us create an accounting
+transaction based on how the payment wasmade. This is very useful if we want to
+automate the creation of accounting transactions.
+
+== Invoice Item Types
+
+An “Invoice Item Type” is another way to describe the different type of individual
+line items that appear on an invoice. For example an invoice is usually made up of:
+
+ * A header - which contains details of the supplier, customer, invoice date etc
+ * Line items - which are the products, taxes, discounts etc on the invoice
+ * A footer - which summarises the totals, taxes and discounts
+
+Invoice item types can refer to any of these three areas on an invoice. They can
+also be broken down into specific categories that allow us to classify or report
+on the total or frequency of that type.
+
+Some examples of Invoice Item Types are:
+
+ * Type of Product (Standard, Digital, Service)
+ * Shipping or Handling Charges
+ * Promotions (Discounted Products, Free Products)
+ * Discounts (Product Discount, Invoice Discount, Early Payment)
+ * Returned Items (Faulty, Replacement)
+
+OFBiz allows us to setup a code for each of the different line item types that can
+appear on an invoice. We can then link each item type to a specific General Ledger
+account. By doing this OFBiz will be able to help us create an accounting transactions
+based on the item types that appear on the invoice.
+
+This is very useful if we want to automate the creation of accounting transactions.
+
+== Rates
+
+Rates are used to create a “pay rate” or “charge amount” that can be used in the
+calculation of a task, employee salary or a service that involves people.
+
+Rates are closely linked to the OFBiz Human Resources Manager application but are
+also used across multiple OFBiz applications (Manufacturing, Asset Maintenance,
+Project Tasks, Timesheet Entry etc) where person related work tasks are required.
+
+== Foreign Exchange Rates
+
+Foreign exchange rates are used to convert from one currency to another. A business
+will usually want to work in one main currency (e.g. GBP) but will allow transactions
+in other currencies (e.g. EUR, USD). These currencies will need to be converted
+to the main currency in order to generate financial reports (e.g. Balance Sheet
+or Income Statement) and most importantly to adhere to Tax Authority regulations.
+
+== GL Account Category
+
+A “General Ledger Account Category” (or GL Account Category) is a generic term to
+describe the way you can segment or classify accounts. Categories can be setup and
+then linked to the required accounts.
+
+Another way to think about it is that it is like adding an extra tag to an account
+so that you can easily retrieve that account to do any additional reporting or
+processing.
+
+In OFBiz at the time of writing, the GL Account Category has been used to implement
+cost centre functionality for the Chart of Accounts.
+
+== Cost Centers
+
+A cost centre is an area or part of an organisation where costs (direct or indirect)
+ can be allocated .
+
+By default OFBiz will allocate and post 100% of any accounting value to the
+specified General Ledger account. Setting up Cost Centres allows you to split the
+amount across different areas using a percentage calculation.
+
+For example: You want to buy something that and three departments will
+contribute to buying it. If the product costs $90 then each department will pay
+$30 towards the cost.
+
+OFBiz will allow you to setup the percentage that each cost centre will contribute
+so that you can view and track how much each department has contributed or spent.

Modified: ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/accounting.adoc
URL: http://svn.apache.org/viewvc/ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/accounting.adoc?rev=1827195&r1=1827194&r2=1827195&view=diff
==============================================================================
--- ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/accounting.adoc (original)
+++ ofbiz/ofbiz-framework/trunk/applications/accounting/src/docs/asciidoc/accounting.adoc Mon Mar 19 13:06:22 2018
@@ -29,3 +29,5 @@ integrated to provide more value than a
 include::_include/acc-intro.adoc[leveloffset=+1]
 
 include::_include/acc-agreements.adoc[leveloffset=+1]
+
+include::_include/acc-global-settings.adoc[leveloffset=+1]