When a customer exceeds their credit limit due to new orders that are greater than their limit, or due to unpaid balances, or combination of both, we have two main options, depending on our decision on each customer:
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How to do enhancement in VKM* based on the sales office
Tuesday, 18 July 2017 10:23
Hi Bhuvana, thank you for your question. Can you please explain in little bit more details what do you mean by enhancement or what... Read More
Thursday, 03 August 2017 11:37
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Why should we worry about reconciling costing based Profitability Analysis (CO-PA) to the GL? After all, GL is the book of record from an external reporting stand point. However, CO-PA has several advantages that the GL does not provide. For example, CO-PA can give us details on revenue and cost of sales (COS) split by sales order, product line, customer, etc. as opposed to the GL, which gives us only total revenue and total COS. CO-PA allows us to drill down to the details of a company’s profitability – customer, product line, which can be especially useful when forecasting future sales/COS. Therefore, CO-PA is an important financial tool; however for it to be accurate, we need procedures to reconcile or explain differences between CO-PA and the GL.