Add General Ledger / CPA Hooks
> Type : 'package' or 'resource'
> Cost : assigned at the time of order, then if the
> price changes after the order but prior to invoice
> the customer is not surprised by the bill.
> If the customer cancels the item, then it may obtain
> a different price for adding it back into an order.
WARNING WARNING WARNING WILL ROBINSON
This will drive a cpa/accounting type through the roof. And instantly
diatribe us as blooming idiots.
This goes back to FIFO/LIFO accounting methodologys. The FIRST thing that
we need to know from those knuckle crunchers, is which type they live by.
The "NORM" is FIFO. That means.. heeheheheh your gonna hate me. THERE IS
NOT A FIXED COST. Each time a "resource" *ugh that sounds wrong* is
resupplied. And YES it MUST be resupplied unless it is a "labor type", it
will have a fixed cost/unit based on total cost including shipping ( maybe
*snicker* ) divided by the total number of units recieved. Now then.... the
cost of the unit when sold is VERY much based on wether or not the x
previous units @ y price have been consumed. If not, then costing is based
on y, if so then costing is based on y1... etc....... Now, if its LIFO, then
just the obverse happens. All new orders are costed out at the new unit
price until x is met, then at the old of y etc.... This is frequently
measured by the monetary unit. So the defining indicator would be if enough
monetary units were spent to equal the cost of the FIFO/LIFO costing.
Now, having said all that, we begin to enter into the realm of General
Ledgers *UGH*, which is where I start abandoning ship LOL. Yes we MUST have
some sort of minor GL so that these things can be tracked. Yes, the cost of
freight is a completely seperate cost from the cost of product and is put
into the GL as such, HOWEVER the value of the product is based on the "TRUE"
cost, NORMALLY. Some folks don't use "true" costing and use actuarial
costing, and those types drive me bonkers, cause I have no clue how they
make the numbers jive. I have a hard enough time with the straight FIFO
without convulting it.
What kind of gl do we need you ask??
Ahhhhh goood question....Here are some of a few that I can think of off the
top... and yes, this is a completely seperate table... May not even be the
Total Gross Sales
Total Net Sales
Telephone ( can be equiptment but is usually standalone )
Processing Costs ( i.e. credit cards etc.. )
Donations ( give-a-ways, free months, reductions in rates etc... )
To create a true P&L all of these things must be present or its tainted
Don't ask me which are necessary, I don't know.
There is somethign called "GAAP"? That I think describes this... its kinda
like RFC's. Yes, there is a GENERALLY ACCEPTED numbering schema. These
would be the major fields in the GL database.
basically a GL looks something like this.....
1010 building costs
1020 maintence costs
1022 Cisco Contracts
1023 Consultant fees......
2110 Liquidable Assets
2111 Cash on Hand
2112 Cash in Bank
2113 Notes due
2220 phsyical Assets
2230 buildings ( each time a payment is made to the mortage,
the liabliity is deprecated and the asset is incremented )
3010 via WWW
3020 via phone
this could go on and on. There are very few gl accounts that are mandatory,
and we could get an idea of what those are, buy looking at one of the cheap
$7 annual accounting books that are out... I forget the company but they are
for tiny biz. Any CPA with the reciepts to back them up, can use one of
these books and have all the legal info he needs. Also they are fairly
simple to do by hand.
HOWEVER, I have seen gl's that had over 50,000 accounts... So it all depends
on ur cpa is the bottom line. Generally you go to ur CPA and say, I need a
gl, you two chat a bit about HOW you THINK you want to run your biz, and
then he/she transaltes that into a GL for you. Then you plug that into an
Now if we're strictly going to be a "BILLING" machine, then that is fine,
too, but lets make it possible to plunk our wonderful data into a full blown
just my 3cents worth