Answered Integration and landing cost.
Hello,
I created a DEAR and XERO account.
I tried the integration, so when I synch both of them it says the Account Mapping has not been finalized.
1)why is that?
and second I am trying to allocate by percentage the freight/custom duty cost to each product sold. I guess this would be the landed cost.
2) What should I do first with the accounts and products before entering the purchase?
After I set up the accounts and products name what should I do?
Thank you for your help.
yes I have seperate bills for the freight and the items imported. Let's say I imported tables and chairs.
So I have to create 2 different purchases.
First one for the tables which will have "Inventory" as the inventory account, then I enter the tables and chairs imported and their prices.
Second purchase for the freight/custom which will have as well "Inventory" as the inventory account? and then where do I put "purchase-clearing" next to each item? I don't see any place in the additional cost part. And I leave the order line empty for this one?
How will the freight cost be didstributed on the items purchased?
Thanks again for your replies.
and how do I authorize invoice tab?
thanks
I didn't do any sale.
I haven't sold any of these products yet.
What does the invoice has to do with this?
It should be something like this:
-enter purchase (from supplier A)
-enter freight/duty cost (from company B)
-Distribute the cost of the freight and duty on the purchase automatically.
There shouldn't be anything related to invoice.
Perfect, but after the order tab is authorized, the invoice tabs remains unauthorized.
why is that?
and for the taxes, here we have 2 taxes, one is 9.975% and one is 5% and I have to use both of them in a sale or in a purchase can I create and use 2 taxes in a single invoice or puchase?
thank you
Thank you so much for your help.
I will give real numbers here:
I purchased from my supplier A the following:
-12 tables which cost(exwork) each 20$
-15 chairs which cost(exowrk) each 15$
Then supplier A sent me the bill which has an amount of 465$
The company B transported this purchase and cleared the items and sent me the following bill:
-Freight cost : 300$
-worker fees : 20$
-GST : 30$
-custom duty : 20$
Total with GST : 370$
Total without GST : 340$ (which is the one I will be using since the GST is not an expense)
what I want to do is to take the 340$ and distribute it on the chairs and tables like this:
340$/465$ = 0.73
so, 1.73 x 20$ = 34.6$ per table
1.73 x 15$ = 25.95$ per chair
so the cost of one table is 34.6$ and the cost of one chair is 25.95$
That is what I am trying to do.
Mario Kachouh,
"Invoice" in this case means invoice tab on the purchase order screen. This is a bill from your suppliers. You are correct - you need to do the following steps:
-enter purchase (from supplier A) - Create a new purchase order A - authorize "Order" tab, "Stock Received" tab and "Invoice" tab
-enter freight/duty cost (from company B) - Create a new purchase order B - authorize "Order" tab and "Invoice" tab
-Distribute the cost of the freight and duty on the purchase automatically - open purchase order A "Manual Journals" and add freight and duty there.
Hi Mario Kachouh,
To complete the Account Mapping you need to navigate to Settings -> Reference Books -> Financial -> Account Mapping and choose the accounts for transactions.
Landed cost in DEAR is explained in this article: http://dearsystems.freshdesk.com/solution/categories/1000057586/folders/1000203151/articles/1000085230-landed-cost-purchase-manual-journals
I see, but I still don't get the authorizing thing, the article that you posted about authorizing the invoice is about how to enter the invoice, so do I have to enter as well the invoice of my supplier in addition to the purchase, or from what step of that article do I have to start?
Mario Kachouh, for each purchase you need to complete three steps:
1. Create new purchase order, authorize Order tab: https://www.youtube.com/watch?v=590IpH8DCx8&index=11&list=PLkih4Eu6IIl7-Pvz0GbfJCDrK-oJeCDZH
2. Authorize Invoice tab: https://www.youtube.com/watch?v=UnasR742o-E&list=PLkih4Eu6IIl7-Pvz0GbfJCDrK-oJeCDZH&index=12
3. Authorize Stock Received tab: https://www.youtube.com/watch?v=pTThGwr1QAg&index=13&list=PLkih4Eu6IIl7-Pvz0GbfJCDrK-oJeCDZH
You need to make sure that all three tabs are authorize for proper accounting. After this you will be able to create a manual journal for landed cost.
Hi Mario Kachouh,
Perfect, but after the order tab is authorized, the invoice tabs remains unauthorized.
why is that?
The invoice tab doesn't authorize automatically. You need to navigate to the tab, copy the lines from the order and authorize the invoice. Please check out this article for more details on processing sale order: http://dearsystems.freshdesk.com/solution/categories/1000057586/folders/1000203672/articles/1000132721-processing-sale
If you still have a problem - please submit a support ticket and indicate the Sale Order number you are trying to authorize.
and for the taxes, here we have 2 taxes, one is 9.975% and one is 5% and I have to use both of them in a sale or in a purchase can I create and use 2 taxes in a single invoice or puchase?
You can select only one tax rule for an order. However you are able to create a tax rule with two components. Please check out this article: http://dearsystems.freshdesk.com/solution/categories/1000057586/folders/1000090617/articles/1000064809-how-to-use-tax-rules-
Mario Kachouh,
"so if I want to enter a journal transaction, i have to do it on Xero and then synch it to DEAR?" - this depends on the journal transaction you are trying to create. We do not pull manual journals from Xero - so the answer is no. Generally all manual journals are created in Xero and they are not created in DEAR. The exception is manual journals related to landed cost - they are created in DEAR and synced to Xero.
another question, I am following the article for landing cost, and I cannot select the "manual journal", why is that?
You need to authorize invoice tab before being able to create a manual journal.
I followed the second part of the article. They say to add the freight and duy cost as additional cost and to add the imported items all in the same purchase. But they say in the article to add "purchase-clearing" as the default account, however, there is no "Default account" in the purchase page there is only "inventory account"
what do I do?
It's not mandatory to add everything in a sigle purchase. This depends on how many bills you get from your suppliers. If you get three separate bills for freight, duty and stock - then you will have three separate purchase orders in the system.
You can have any "inventory account" in the purchase page. You just need to make sure that you have "purchase-clearing" account next to the "purchase-clearing" item in the additional charges section.
Mario Kachouh,
First one for the tables which will have "Inventory" as the inventory account, then I enter the tables and chairs imported and their prices.
If you use the second part of the tutorial you do not use Inventory account and tables and chairs inventory items. You need to use additional charges section and clearing expense account.
Second purchase for the freight/custom which will have as well "Inventory" as the inventory account? and then where do I put "purchase-clearing" next to each item? I don't see any place in the additional cost part. And I leave the order line empty for this one?
The same here.
How will the freight cost be didstributed on the items purchased?
You need to do your own calculations and and the items with their cost as a stock adjustment.
and how do I authorize invoice tab?
After the Order tab is authorized you are then able to navigate to invoice tab and copy additional charges from the order tab. This will allow to authorize the invoice tab.Make sure your "Total" field amount matches with the invoice total.
However are you sure that you need to use this complicated method to add the landed cost? Could you give us an example with real numbers and your calculations how you distribute the landed cost? probably the first scenario would be enough?
Thanks for your reply.
The problem is that when i choose the account for the mapping, I can't find the inventory account for the inventory control account. How can I add the inventory account?
Mario Kachouh,
This is actually how DEAR distributes cost by default. So you need to use the first method from the article which is much easier. When you create a purchase invoice for chairs and tables you then navigate to manual journals tab and add the total amount you would like to distribute among the items: