I would need an advice on which cathegory to activate in our Manager Cloud as we are setting up our business.
Our company is in a similar situation outlined in the business at above link, where we often invoice goods before having purchased them: we order items only upon client confirmation and receiving advance payments. As a consequence our sale invoices OFTEN PRECEDE the purchase order.
Similarly, we do not hold stock/inventory nor have a wharehouse but drop ship directly.
My question is:
Which cathegories should I activate ? Am I correct in that I do not need any of the “inventory” tabs and only need maybe “purchase orders” or “production orders”?
-where do I see the profit margin I have on each sale? can I create a report or a new field with a calculation?
Sorry for the long email but i believe all these tabs have effect on the final profil / loss statement.
I don’t think you should be invoicing your customers before the goods are delivered. This means you are recognising the income before it due to you - and before you have recorded the costs. This will completely distort your P & L
Whether or not you need to enable inventory-related tabs depends on how you want to treat the items you sell. Based on what you wrote, it sounds like you treat them as inventory and want to track profitability as inventory. It does not matter whether you warehouse stock on your premises or not. You are purchasing tangible goods for resale. Your ordering process simply lags your sale process.
Purchase orders are entirely optional. They have no accounting impact, but are a convenient way of first entering purchase information into the system so they can be copied to purchase invoices when the time is right.
Production orders are not appropriate at all. You are not producing anything. You use production orders when you manufacture finished goods from other inventory items.
You do not see true profit anywhere for a single sale, because profit depends on many more things besides a current sale price. The closest you can get is the Inventory Profit Margin report.
No.
No. Custom fields are for information only. No field in Manager can contain calculations.