Manufacturing Secret : Product Development and Intelligent Manufacturing For Flexible Automation With Odoo 17: odoo consultations, #1.1

Introduction

Financial Accounting Bookkeeping Basics

This is the first course in a series of four that will give you the skills needed to start your career in bookkeeping. If you have a passion for helping clients solve problems, this book is for you. 

In this book, you will be introduced to the role of a bookkeeper and learn what bookkeeping professionals do every day. 

You will learn how to work your way through the accounting cycle and be able to read and produce key financial statements.

By the end of this book, you will be able to:

-Define accounting and the concepts of accounting measurement

-Explain the role of a bookkeeper and common bookkeeping tasks and responsibilities

-Summarize the double entry accounting method

-Explain the ethical and social responsibilities of bookkeepers in ensuring the integrity of financial information.

recording transactions

-you'll learn how to prepare these financial statements, and read and analyze them to draw basic conclusions about a company's financial health.

- Use journal entries to record transactions

- Prepare and use t-accounts to summarize transactions recorded during an accounting period

- Describe the three most commonly used financial statements and how they fit together

- Prepare these financial statements based on transactions recorded during an accounting period

- Draw basic conclusions about a company's financial health

Introduction to Operations Management

This comprehensive book delves into operations management and process improvement principles and techniques, providing you with the knowledge and skills necessary to identify and eliminate inefficiencies in your organization. 

You will gain a solid foundation in operations management by analyzing key concepts such as cost-quality trade-offs, the efficiency frontier, and system inhibitors.

Get ready to delve into process analysis, where you'll identify and analyze steps in a process, implementing changes for enhanced outcomes. 

With practical exercises, including creating process flow diagrams and capacity calculations, you'll strengthen your analytical skills firsthand.

Experience the power of optimizing flow within operations as you uncover waste sources and design efficient processes for maximum output, reduced costs, and heightened customer satisfaction. 

An in-depth exploration of ODOO will equip you to make informed decisions on capacity planning and process improvements, optimizing inventory levels, reducing lead times, and enhancing supply chain coordination.

Additionally, you'll learn to effectively manage variability, laying the groundwork for consistent and exceptional quality standards. Statistical analysis, problem-solving methodologies, and real-time information utilization will empower you to tackle issues, find root causes, and foster continuous improvement.

Throughout the book, the focus remains on driving improvements and achieving excellence. Analyze, improve, and reimagine how work gets done, armed with the necessary tools and frameworks to enhance work processes across diverse industries.

Join this book to analyze, improve, and reimagine how work gets done and to acquire the necessary tools and knowledge to make meaningful improvements in your organization's 

Digital Technologies and the Future of Manufacturing Specialization

Digital technologies are fundamentally transforming every aspect of the value chain in manufacturing, logistics, and management consulting. 

In this books series, you’ll learn the basics behind some of these breakthrough technologies and their business applications, including improved productivity, quality, and cycle-time benefits within manufacturing and logistics. Challenges and risks for businesses will also be addressed.

The book projects are based on case studies of fictional companies facing manufacturing challenges or opportunities where digital technologies can be implemented as viable solutions. 

Learners will be asked to take on the role of a technology consultant, evaluate a company's situation, and based on what they have learned about a particular technology topic, present recommendations to the company's leadership for consideration. 

Given the business emphasis of the books in the specialization, the project will challenge learners to consider the business value, risks, challenges, planning, and impact on employees when developing their recommendations.

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Advanced Manufacturing Process Analysis

Variability is a fact of life in manufacturing environments, impacting product quality and yield. Through this course, students will learn why performing advanced analysis of manufacturing processes is integral for diagnosing and correcting operational flaws in order to improve yields and reduce costs.   

Gain insights into the best ways to collect, prepare and analyze data, as well as computational platforms that can be leveraged to collect and process data over sustained periods of time. 

Become better prepared to participate as a member of an advanced analysis team and share valuable inputs on effective implementation.    

Enterprises that seek to become proficient in advanced manufacturing must incorporate manufacturing management tools and integrate data throughout the supply chain to be successful. 

This book will make you aware of what a digitally connected enterprise is, as they learn about the operational complexity of enterprises, business process optimization and the concept of an integrated product-process-value chain. 

become acquainted with the available tools, technologies and techniques for aggregation and integration of data throughout the manufacturing supply chain and entire product life-cycle. 

They will receive foundational knowledge to assist in efforts to facilitate design, planning, and production scheduling of goods and services by applying product life cycle data.  

Inventory Management

Inventory is a strategic asset for organizations. The effective management of inventory can minimize a company’s spending while dramatically increasing its profit. 

In this book, we will explore how to use data science to manage inventory in uncertain environments, how to set inventory levels based on customer service requirements, and how to calculate inventory for products that have short sales cycles.

In today's competitive business landscape, efficient inventory management is a critical factor for the success of any organization. 

Businesses face challenges in maintaining the right balance between having enough inventory to meet customer demands and avoiding excess stock that ties up capital and increases storage costs. 

This book, titled Effective Inventory Management and Optimization, addresses a need for professionals to understand the intricacies of inventory control and optimization. 

Inventory management directly impacts an organization's bottom line, affecting factors such as operational costs, customer satisfaction, and overall profitability. 

Mismanagement of inventory can lead to stockouts, delays in fulfilling orders, increased carrying costs, and inefficient use of resources. 

This book provides comprehensive insights into inventory management techniques and best practices to optimize inventory levels, reduce costs, and improve inventory management efficiency. 

Participants will gain valuable knowledge and practical skills to enhance inventory control processes.

This book is designed for professionals involved in inventory management, logistics, supply chain, or procurement functions. It is also beneficial for business owners and managers seeking to improve their organization's inventory management practices.

Supply Chain Management Specialization

This Specialization is an introduction to the fascinating world of Supply Chain Management. When you complete the program you'll have a  richer understanding of the complexities that companies are facing in today's global networked economy.  

The Specialization is for you, if: 1. you're looking to start a career in Supply Chain Management, but lack the basic background; 2. you're working with people in Supply Chain Management and want to understand their daily challenges better; 3. you're fascinated by how the global economy is linked together by the flow of products, information, and finances.

The Supply Chain Management Specialization is made up of four basic courses in logistics, operations, planning, and sourcing, followed by a capstone book in Supply Chain Management Strategy. 

The Supply Chain Logistics book will cover transportation, warehousing and inventory, and logistics network design. In the Supply Chain Planning book you'll master different forecasting approaches. 

The Supply Chain Sourcing book deals with different techniques that help you create lasting and productive supplier relationships. Finally, in the capstone book on Supply Chain Management Strategy you'll solve a real-life business case.

Chapter one

Chart of Accounts & Account Types

Effective accounting practices demand a litany of skills and knowledge, and fiscal acuity is especially critical for time and resource-challenged small- to medium-sized organizations. Every buck counts and organizing and reporting on them within a cogent General Ledger not only provides insight and discipline but results in improved processes that impact practical outcomes such as regulatory compliance. Enter the Chart of Accounts, aka COA, for our current consideration, as a key metric of financial health.

the chart of accounts and the account types the chart of accounts is basically the dna of the company so this is how we structure all the value that needs to be represented in the accounting every item in the company is related to an account without this it doesn't exist in the accounting let's take some examples in the belgian gap

so gaap means generally accepted accounting principles so these are the accounting rules that apply in belgium so every time you see gap and a country before it it means that those are the accounting it's based on the accounting rules of this country for example let's take coffee so you buy coffee for your employees uh it's the costs for you it's an expense for the company uh so it's the account 61.

the debt to the caterer for the office party so it's a vendor debt it's a payable account so it's account 44. uh the new car that you need to buy is an investment so uh it goes in the account 24. the sales of goods is an income a revenue so it will go in the account 70.

in a journal entry so in any journal entry that we will encode in the system we will use the accounts to create the value in the company's accounting without those the accounting doesn't exist in belgium

this the accounts are divided into classes each country has their own but in continental accounting they are more or less the same rather uh then for example in uh anglo-saxon accounting the labels are more important than the codes so the number of the account so class number one

so all the accounts that start by one are the accounts are related to the class equity and subordinated debts two for fixed assets three for inventory four for current assets and liabilities so receivable and payable five for banking cash accounts and expenses and income for the accounts six and seven so this is not something that you should remember and learn by heart it's just to help you out when you talk to your client um to be able to interact with their accounting needs

when they're explaining something the fact that you know which type of account is related in their is is present in their charter account will help you give better advice regarding their accounting requirement so just keep that in mind and you know it might help you out when you're in a real life situation now

let's check out the account types uh this is quite um ozo specific so we have different types that uh for which we split all the accounts in every account needs a type of account and the type is chosen uh based on the nature of the account and these these accounts these types sorry bring structure to the to the chart of accounts and to um well the entries themselves also we can also use that it impacts the reports

so in odu the generic reports for example are built based on the type of account we'll see that uh in the future Part and future topics that based on uh the country well accounting principles the financial reports may be split based on the type of account based on the code of the account

or based on uh the tags that may be undercut we'll start to see that together but keep in mind that the account times are really important for generic financial statements uh in order to have the splits between the types of accounts that's all for me in this Part thank you for watching and see you in the next topic

Summary

Basic Chart of Account Categories

While every COA will differ, there are some basic categories that most organizations will want to include, or at least consider, tailored to the specific nature of your business.

Assets are comprised of a list of different components showing the value of monies on hand and owed to you, as well as property owned

Bank accounts, typically checking and savings accounts.

Accounts receivable are the amounts owed to you for products provided or services performed.

Retention receivables are the amounts customers are holding until work is completed.

Assets your organization owns (usually physical, but not always- think patents, trademarks, and software) such as equipment and real estate that assist in creating your product or service.

Underbillings are entries made when you have billed for less than you have completed (otherwise referred to as percent complete income recognition)

Inventory such as pre-paid materials, supplies, and parts kept on hand.

Liabilities are just that, monies owed or due for payment by your organization

Customer deposits and down payments including any interim payments (such as using a payment on completion of agreement method).

Accounts payable are the typical amounts you owe to vendors for raw materials or parts, needed equipment, and any subcontractor-related services.

Retention payables are the amounts you owe to vendors held until work is completed.

Assets your organization owns (usually physical, but not always- think patents, trademarks, and software) such as equipment and real estate that assist in creating your product or service.

Loans, including any company or project notes that are outstanding current liabilities.

Shareholders’ equity (this may be negative or positive).

Overbillings are amounts owed when you have billed for more product/service than you have completed (aka percent complete income recognition).

Retained earnings are company profits or losses from the previous fiscal year.

Amounts owed via employee expense accounts.

Income or Revenue represents the gains amassed from multiples sources

Sales, including income derived from the delivery of a product or service.

Interest income such as earned interest on bank accounts or other investments.

Over and under billing adjustments.

Cost of Goods Sold (COGS) is the additional expenses needed to

successfully deliver a product or service

Labor costs may include such items as salaries, employee benefits, and any employerresponsible taxes.

Material costs such as raw materials or parts needed to complete the finished deliverable.

Subcontractor or non-employee expenses required.

Equipment costs covering both rental and/or the operation of owned equipment.

Expenses are divided into two categories, direct and indirect.

Direct expenses can include

Indirect expenses can include

Administrative costs including labor and necessary operational software.

Office expenses that cover building rent, office supplies, and other operational needs.

Taxes, such as business income tax and sales tax.

Insurance of all types such as liability, workers comp, and vehicle.

Vehicle costs including expenses related to maintenance and fuel.

Mobile phones and the cost for both equipment and associated service contracts.

How to Set Up a Chart of Accounts

Sample Chart of Accounts are readily available for upload

from the Internet, or you can establish your own using

standard default numbers and customized sub-designations

for account types.

See the list earlier in this document for the specific macro-designations. That means, in most cases, all your asset accounts will use the number 1, followed by four numbers (1-XXXX), while your liability accounts would start with the number 2 (2-XXXX), and so on through the numeric list. This is a practical structure for businesses that manufacture or sell products and is a good fit for those looking for added specificity in their chart of accounts structure. Again, using the multiple three- or four-digit sub-account designations will provide more in-depth transaction tracking and overall fiscal transparency.

A Chart of Accounts Tailored to Your Needs

While the chart of accounts can be similar across like businesses, every COA should be unique to your business. Questions to ask include:

What do I want to track in my business?

How do I want to organize information to best see my results and refine my strategy?

Odoo Debit: Definition and Relationship to Credit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet. In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction.

For instance, if a firm takes out a loan to purchase equipment, it would simultaneously debit fixed assets and credit a liabilities account, depending on the nature of the loan. The abbreviation for debit is sometimes dr, which is short for debtor.

debit and credit concept debit and credit is the foundation of what accounting is like as an accountant  the day-to-day activities are double entry bookkeeping

that's the base of everything a journal entry is composed of two parts one side is the debit and one the other side is the credit and the main concept of all accounting is that debit should always equal credit if you don't have that you don't have a right accounting and basically it's not going to be possible to post these entries once you record the journal item you will always find a counterpart and you won't be able to post items

that are not unbalanced so which means if your debit doesn't equal your credit you can't save your journal entry and you're going to be stuck depending on how your account is going to be debited or credited it will have an impact on your reports so let's take a few examples  first we're going to see a salary entry

so a cellular entry is composed again of two parts mainly and we're not going to see this into details on one side you're going to have the employee's costs so what it costs you to accompany and the cost is represented in an expense account regarding the accounts types it's going to help you understand this topic and the cost should be represented on the debit side and the counterpart of this entry is the employee's debt so what you owe to your employee

so their salary basically and debts that you owe to  another par on a third party like a supplier but also your employees should be recorded in a current liability account and as it is a counterpart of a debit should blow in the credit next example  you receive a payment from your customer

so you have an additional value in your bank account so it goes in the bank and cash account and should go on the debit side and the counter part of it is your customers debt that we have settled so the customer debt is represented in a current asset account 

so when we receive the money we want to make sure that this account is settled so there is no more debt in it because we received the money  so this is why it is a counterpart of a customer payment as i said accounts can have different behaviors on the debit and credit side depending on their nature

so  just take a look at this table the first type of account is what we call an active account we're going to see that more in details to see what this is about so active accounts for example a bank account is an active account if you want to increase the value of this account because

in the our last example when we receive the customer payment the value of our bank account increases we want to record this value on the debit side and once for example if we pay a supplier we decrease the value of our bank account so it should be recorded on the credit side passive accounts have the opposite behavior

so  for example a supplier debt so if you owe money to your you have a vendor bill so you have this vendor represented that's that you have towards your supplier when you receive this vendor bill you need to increase the value of debts the amount of debt that you had towards your supplier so in that case if you have an increase in this account you have to credit the value okay so the payable account is a passive account and as such if you increase the payable

because you have a new vendor bear you need to credit the account the expense accounts  if you want in that case so remember the employee's cost in that case it's an expense account if you want to increase the value of it because you have a new cost in that case it's going to be a debit  value if you want to increase the cost and for income accounts going to be the contrary

so  when you record a sales invoice the income in this in the sales entry is going to be  on the credit side

What Is the Difference Between a Debit and a Credit?

A debit is a feature found in all double-entry accounting systems. Debits are the opposite of credits.

In a standard journal entry, all debits are placed as the top lines, while all credits are listed on the line below debits. When using T-accounts, a debit is on the left side of the chart while a credit is on the right side. Debits and credits are utilized in the trial balance and adjusted trial balance to ensure that all entries balance. The total dollar amount of all debits must equal the total dollar amount of all credits. In other words, finances must balance.

A dangling debit is a debit balance with no offsetting credit balance that would allow it to be written off. It occurs in financial accounting and reflects discrepancies in a company’s balance sheet, as well as when a company purchases goodwill or services to create a debit.

For example, if Barnes & Noble sold $20,000 worth of books, it would debit its cash account $20,000 and credit its books or inventory account $20,000. This double-entry system shows that the company now has $20,000 more in cash and a corresponding $20,000 less in books.

Normal Accounting Balances

Certain types of accounts have natural balances in financial accounting systems. Assets and expenses have natural debit balances. This means that positive values for assets and expenses are debited and negative balances are credited.

For example, upon the receipt of $1,000 cash, a journal entry would include a debit of $1,000 to the cash account in the balance sheet, because cash is increasing. If another transaction involves payment of $500 in cash, the journal entry would have a credit to the cash account of $500 because cash is being reduced. In effect, a debit increases an expense account in the income statement, and a credit decreases it.

Liabilities, revenues, and equity accounts have natural credit balances. If a debit is applied to any of these accounts, the account balance has decreased. For example, a debit to the accounts payable account in the balance sheet indicates a reduction of a liability. The offsetting credit is most likely a credit to cash because the reduction of a liability means that the debt is being paid and cash is an outflow.