In order to have a structure in our Information System that allows the tool to be equipped with an adequate Control System, this System must somehow integrate the creation of Responsibility Centers (cost centers, profit centers, etc.) for its subsequent Management and Monitoring. Odoo allows for the availability of an Analytical Accounting structure that integrates that creation and Management Control.
Through the Centers of Responsibility, we can create an Analytical Structure that will correspond to a greater or lesser extent with a structure of "physical" elements (retail stores, warehouses) or more "conceptual" elements (business departments, areas of business), or combinations of both types of elements.
As examples of these different "elements" or "main units" of the structure, we can mention:
- Companies with various Distribution Centers (chains of establishments, different business locations, ..)
- Departments of an Organization (Sales, Purchasing, Administration)
- Business Areas (direct sales, indirect sales, online sales)
Subsequently, derived elements will be created from the main elements, following a tree structure according to the needs of the company. We can see an example of Analytical Structure in Odoo in the following capture:
Odoo OpenERP ERP Analytical Account Structure
It is interesting and often essential to carry out the allocation of income or costs to the different Units of this Structure manually and/or automatically. Odoo / OpenERP it allows doing so from the lines of issued and received invoices, as well as from orders, using Distribution Models, which enable the assignment of predefined Distribution patterns using different methods, such as Percentage Distribution. In the following images, different mechanisms for allocating income and costs to different Business Units can be observed:
Sales Invoice Odoo OpenERP with income allocation to Analytics
Select Analytical Distribution in the Sales Order, assigning to one or several centers, or to distribute
Purchase Order in Odoo with cost allocation to one or several Cost Centers
One of the most important phases in the implementation of a Management Control using this type of Organizational Structure is the preliminary Analysis that will define the most suitable structure for your Organization. Getting this point right greatly facilitates the subsequent use and interpretation of the data extracted from the Analytics.
Since Adaria Group we are at your disposal to assist you with this implementation and we will achieve it quickly thanks to the flexibility of a solution like Odoo, comprehensive management solution and Open Source (Free Source Code) widely adopted in a large number of organizations around the world. Odoo, formerly known as OpenERPallows for the availability of an Integrated Management ERP Solution considered on par with other major systems ERP such as SAP, Microsoft Dynamics, etc., with the advantage of avoiding the licensing costs typical of other commercial solutions. Due to its flexibility, it adapts to a wide range of business types and different volumes, from microenterprises to multinational companies.
Content aimed, among others, at Chief Financial Officers, Managers, or Professionals in the Financial Area and Management Control who wish to access Solutions that enable the growth of their organization in such a way that the chosen Solution adapts to that Business expansion now and in the future, thanks to the flexibility and power of the System, and with the Investment Protection that a tool implies Open Source (Free Source Code).